They must complete the necessary training, obtain real-life work experience and pass the thorough CPA exam. A CPA is an accounting professional who has met state-level certification requirements to obtain the CPA designation. Keeping accurate records and filing tax returns can be quite complex, so many Americans choose to seek professional help from an accountant. It’s not necessarily cheap to work cpa vs accountant with a tax professional, but it can save you lots of time, and potentially unlock tax breaks you wouldn’t otherwise find on your own. Given the similarities between the two roles, it’s understandable to feel a bit confused about the difference between an accountant and a CPA. Both professions specialize in crunching numbers and working on the finances of individuals and all types of companies.
You may choose to specialize in a particular area, such as forensic services, taxes, or working within an industry like health care. Alternatively, depending on your career path, you can focus on a wide spectrum of accounting services. A CPA is a financial professional licensed by a state board to provide accounting services to the public. A CPA performs accounting duties such as tax preparation, auditing, and consulting.
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CPAs with less than one year of experience earn $70,000 annually, while those with more than 20 years of experience earn $150,000. In fact, according to the Bureau of Labor Statistics, CPAs earn 10% to 25% more than non-certified accountants. However, salaries of CPAs and non-certified accountants vary by industry. They can be higher than average in industries experiencing a lot of growth, such as financial technology or software.
- Additionally, many accountants choose to specialize in a particular area, such as tax preparation or auditing.
- Accountants without a CPA certification may prepare a proper tax return, but a CPA offers distinct advantages to clients that non-CPAs cannot provide.
- There are a few more things that CPAs typically do that are different from the tasks that accountants typically perform.
- Researching potential employers and career opportunities in your area is a great place to start.
Each state sets its specific requirements for your eligibility to take the Uniform CPA Exam. Many states require you to hold a bachelor’s degree, and most require or will require 150 hours of post-high school education. Some states require CPA candidates to be at least 18 to 21 years old, and a few require that you’re a citizen or permanent resident.
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A CPA is a professional who has qualified to provide accounting services to the public by passing an exam and meeting other state requirements. All publicly held companies must file financial statements with the Securities and Exchange Commission (SEC). Only CPAs have the legal authority to prepare and certify audited financial statements with the SEC. While CPAs and accountants share some similarities, their differences lie in their qualifications, scope of services, and legal authority. Understanding these differences is crucial when seeking financial guidance.
CPAs acquire a skill set that enhances their accounting abilities and positions them among the most qualified and knowledgeable accountants. CPAs are required to have competencies in accounting and business concepts, research, analytics, problem-solving, communication, project management, and ethical standards. Whether your ambitions lie in public or corporate accounting, you could be prepared to sit for the CPA exam and advance your career in as few as 16 months. More importantly, though, you will learn to become the accountant and leader you are meant to be.
