Education typically involves a bachelor’s degree in accounting or a related business field. While fundamental to financial operations, the title “accountant” does not require a specific license. The main distinction between an accountant and a CPA is certification and scope of practice. A CPA holds a license from a state board of accountancy; “accountant” is a broader title without licensure.
CPAs typically have a more comprehensive skill set, allowing them to tackle complex tasks that require certification. Here’s a breakdown of the unique roles and services each professional can offer. If your business requires audited financial statements for investors or lenders, or assurance services, a CPA is the only authorized professional.
An accountant prepares, analyzes, and manages financial records—everything from bookkeeping to financial statements and budgeting. You can work as an accountant with a bachelor’s degree in accounting or a related field, with no additional license required. As with education, all states require CPA candidates to meet certain minimum experience levels, but details differ among jurisdictions. Generally, requirements include at least 2,000 hours of professional experience. In many states, you must also accrue those hours within a specific time frame.
They work in areas like insurance claims, financial disputes, and criminal investigations, bringing a specialized skill set that requires certification. Accountants may contribute to similar tasks but usually lack the training or credentials for in-depth forensic investigations. While the outlay can add up, many professionals find the long-term earnings and broader opportunities outweigh the upfront cost—especially if your goal is to move into higher-paying leadership or specialized roles. Application fees and the four exam cpa vs accountant sections together can cost between $1,000 and $1,500. Additionally, many candidates invest in a CPA review course, which can range from $1,000 to $3,000.
Accountants often work in either the public or private sectors, handling essential financial tasks like bookkeeping and payroll. In public accounting, CPAs work for firms that serve multiple clients, conducting audits, tax services, and financial advisory. This setup allows CPAs to specialize in tasks with regulatory and compliance requirements, which gives them an edge in the public sector.
Educational Requirements
The average salary for a Certified Public Accountant is estimated to be $93,129, while the average for an accountant is estimated to be $65,721. If you’re weighing a general accounting track versus the CPA route, your education plan will differ. Let’s dive in and unravel these distinctions, ensuring you’re well-prepared to decide who should handle the financial intricacies of your business.
- CPAs are often trained in forensic accounting, where they investigate financial discrepancies and fraud.
- However, the specific amount of upper-level accounting courses, business courses, and other requirements are left to individual states.
- Learn more about what CPAs do, how they differ from accountants, and how to become one.
- Becoming a CPA requires 150 semester hours of college coursework, 30 more than a standard bachelor’s degree.
- All Integrity Network members are paid members of the Red Ventures Education Integrity Network.
- The choice can shape the kind of work you do, the industries you work in, and how far you can advance in your career.
Salary Comparisons and Earning Potential
See details about Atomic Brokerage in their Form CRS, General Disclosures, fee schedule, and FINRA’s BrokerCheck. However, a few states offer a CPA certificate, which shows that you’ve passed all four sections of the CPA Exam but haven’t fulfilled the other licensure requirements. If you want to learn more about the CPA Exam, download our free 2024 CPA Exam Guide. This ebook includes everything you need to know, including the exam format, types of questions in each section, study tips and practice questions. It’s important to note that things like experience, location and role also affect salary, so it’s important to factor these in when considering earning potential. More opportunities and more responsibility often translate into a higher income, and typically, CPAs earn significantly more than non-CPAs.
A double major that features 150 credits or more could also fit the bill. Your state or territory may still require a minimum of 150 education credits to qualify for CPA licensure, which means you need up to 30 credits on top of your 120-credit bachelor’s degree. Forbes Advisor’s education editors are committed to producing unbiased rankings and informative articles covering online colleges, tech bootcamps and career paths.
CPA salary and career outlook
Many organizations seek CPAs specifically because the credential demonstrates a high level of expertise and commitment to ethical standards. A Certified Public Accountant (CPA) is an accountant who meets state board education, exam, and experience requirements. Earning the license means completing 150 semester hours of college credit (more than most bachelor’s programs) and passing the Uniform CPA Examination. Each of these certifications requires an examination, professional experience, and membership in the certifying organization. You must also renew these credentials each year, which requires continuing education credits. While not required, many CPA candidates choose to pursue a master’s degree to fulfill the additional 30 credits.
Essentially, while all CPAs are accountants, not all accountants are CPAs. Between having more freedom to work independently in financial accounting, audit and taxation, as well as having proven knowledge and expertise, CPAs are more sought after than non-licensed accountants. Not only do firms, government agencies, and private companies want to bring CPAs on to their staffs, CPAs can also open their own business, providing services to individuals, businesses and non-profits. Every state requires CPAs to have a bachelor’s degree at minimum with a sufficient amount of accounting credits.
- These services include preparing and filing federal, state, and local tax returns and working with organizations and individuals during the year to minimize their tax obligations.
- This certification equips CPAs with specialized skills and authorizes them to perform services such as audits, financial analysis, and IRS representation.
- I decided that I wanted to start my career in public accounting in order to learn a lot in a short period of time and be exposed to different types of clients and different areas of accounting.
By holding multiple certifications, you can combine the benefits that come with CPA licensure and elevate your appeal to a broader cross-section of potential employers. You will need to complete a minimum number of documented CPE hours each renewal period to maintain your license eligibility. However, as NASBA notes, state-level rules are complex and subject to change.
For example, a company’s annual tax return might be in great shape, but it needs an expert to review quarterly financials and recommend operational improvements. Additionally, most states limit non-CPA ownership of CPA firms to 49 percent; although a few states (New York and Delaware are notable examples) require that CPA firms be 100 percent CPA-owned. One important quality in being a successful CPA is genuinely caring about your clients and their businesses. I love working with not-for-profit clients for that very reason — I feel like I’m really contributing to their mission by helping them have good financial information on which to make smart business decisions. As a self-employed consultant, I still use all the basic building blocks of accounting that I learned in college, pursuing my CPA, and working in public accounting.
