What is an accountant?

Accountants work with financial information to support decision-making within an organization.

Responsibilities can vary depending on the role and organization, but commonly include:

• Preparing financial statements and reports
• Reviewing transactions and reconciling accounts
• Managing accounts payable and receivable
• Supporting budgets and forecasts
• Tracking compliance with internal policies and external regulations
   

Depending on the role, accountants may focus on recordkeeping and routine reporting or take on more analysis and compliance work, often at more senior levels.

If formal study is part of your path, Capella University’s Bachelor of Science in Business, Accounting specialization covers areas such as auditing, reporting procedures and financial communication. Capella University’s business programs are accredited by the Accreditation Council for Business Schools and Programs (ACBSP).

What is a CPA?

A CPA is an accountant who has met state licensure requirements and holds a state-issued professional license. Licensure is managed by individual state boards, which set the requirements candidates must meet to qualify, pass and maintain their license.

CPA status carries the most weight in settings where certain regulated responsibilities are involved. In those situations, licensure can affect what a professional is authorized to do and how their work is overseen.

It's worth noting that CPA is a credential layered on top of accounting rather than a separate field. CPAs typically begin with the same foundational education as other accountants before pursuing licensure as a next step.

Accountant vs. CPA: key differences

Understanding how these roles differ across education, responsibilities and professional requirements can help you better evaluate which path aligns with your goals.

Comparison point	Accountant	CPA
Title use	A general professional title	A state-protected designation in most jurisdictions
Education	A bachelor’s in accounting or a related field is a common starting point	A bachelor’s degree plus additional coursework to meet state licensure requirements
Exam	No CPA exam required	Must pass the Uniform CPA Examination as part of the licensure process
Experience	Often shaped by the employer and the role	Set by the state board, with public accounting experience commonly involved
Signing authority	Generally limited to internal documents and reports	Extends to formal sign-off on regulated filings
Scope of work	May include reporting, budgeting, tax preparation and analysis	May include the same scope, with regulated work like audit and attestation depending on licensure and role
Oversight	Largely shaped by the employer	Subject to state board standards, including ongoing renewal obligations
Mobility	Mostly tied to the employer and the role's location	Many jurisdictions offer mobility privileges across state lines
Time to qualify	Entry into the field generally aligns with completing an undergraduate program	Coursework, exam preparation and qualifying experience can extend the timeline

Where the difference shows up in practice

An accountant in a corporate role often spends their time:

• Reconciling accounts
• Recording transactions
• Managing accounts payable and receivable
• Preparing internal reports
   

A CPA entering public accounting more often steps into audit or tax roles, where the focus shifts toward external review and regulated reporting.

The clearest separation shows up in what each is authorized to do. In some cases, only a CPA can sign off on audited or reviewed financial statements, and publicly traded companies are generally required to have CPAs sign documents submitted to the Securities and Exchange Commission (SEC).

The CPA credential also carries unlimited representation rights before the Internal Revenue Service (IRS), which means a CPA can represent clients on matters including audits, payments, collections and appeals.

How state rules can shape your path

The specifics of what licensure requires can vary depending on the state where you plan to practice.

Individual state boards set requirements for education, experience and ongoing licensure, rather than a single national standard.

The total college credit needed for licensure is similar across most states, but the specific accounting and business coursework that qualifies can differ from one jurisdiction to another.

The National Association of State Boards of Accountancy (NASBA) Boards of Accountancy Directory covers all 55 U.S. jurisdictions and can serve as a useful starting point for understanding the requirements in your state.

How you can pursue CPA licensure

CPA licensure is built on three pillars: education, the Uniform CPA Examination and supervised work experience.

NASBA and AICPA (American Institute of Certified Public Accountants) are the two primary reference points for understanding how these requirements are typically structured, though specific rules can vary by state.

Education requirements

Sitting for the CPA Exam generally requires a bachelor’s degree, with most jurisdictions also expecting an accounting concentration that includes upper-level accounting and business coursework.

One important nuance: many states allow candidates to sit for the exam before completing the full credit-hour total required for licensure. If you already hold a bachelor’s degree, you may still need additional credits before you qualify, sometimes through a master’s in accounting, a Master of Business Administration (MBA) or extra graduate coursework.

Reviewing your transcripts against your jurisdiction’s requirements can help identify any gaps early, including missing accounting hours, business credits or upper-level courses.

The Uniform CPA Examination

The CPA Exam is a four-section, 16-hour assessment, with a minimum passing score of 75 on each section. Candidates take three required Core sections and one Discipline section based on their area of focus:

• Auditing and Attestation (AUD)
• Financial Accounting and Reporting (FAR)
• Taxation and Regulation (REG)
• One Discipline section: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP)
   

After clearing the first section, candidates have either 30 or 36 months to complete the remaining three, depending on their jurisdiction.

Experience requirements

Supervised work experience is required before a license is issued, typically one to two years, depending on the pathway.

According to NASBA and AICPA guidance, several model pathways combine education and experience requirements.

• Graduate degree pathway: Graduate degree in accounting plus one year of experience
• 150-hour pathway: Bachelor’s in accounting plus 30 additional credits, with one year of experience
• 120-hour pathway: Bachelor’s in accounting (120 semester hours) with two years of experience
   

Public accounting work under a licensed CPA is the most widely accepted form of qualifying experience.

Some boards also recognize industry, government or nonprofit work, depending on the nature of the role and the supervision involved.

Ethics requirements

Many jurisdictions require candidates to pass an ethics exam before issuing a CPA license.

The AICPA Professional Ethics Exam is the most common, though some states administer their own version. The exam typically covers the AICPA Code of Professional Conduct and core principles like integrity, objectivity and independence.

The timing of the ethics exam can vary by jurisdiction. Some states require it before issuing a license, while others allow candidates to complete it after the CPA Exam but before applying.

Ongoing licensure and professional obligations

A CPA license carries an ongoing commitment. Licensed CPAs must complete continuing professional education (CPE) on a recurring cycle to keep their license active, with hours typically covering areas such as accounting and auditing updates, taxation changes and regulatory developments.

Planning for CPE early can help you view licensure as a long-term professional commitment rather than a one-time milestone.

How to choose the right path

The choice between being an accountant or pursuing CPA licensure often comes down to the kind of work you want and the role licensure plays in getting there.

A few questions can help you clarify which direction fits your goals:

• What kind of responsibilities do you want? If your goals involve audits, regulated filings or representing clients before the IRS, CPA licensure aligns directly with that work. If you’re more interested in shaping financial decisions within a single organization, a broader accounting foundation may be sufficient without licensure at the center.
• Do you prefer working with multiple clients or with a single organization? Public accounting firms work with external clients across industries and often expect CPA licensure for advancement beyond the staff level. Private or corporate roles focus on a single organization, where licensure is valued but not always required, and credentials such as the certified management accountant (CMA) or an MBA may carry equal weight.
• Where are you in your career right now? CPA licensure requires coordinated effort across education, exam preparation, qualifying experience and ongoing obligations. If your schedule is already full, building a strong accounting foundation first can keep licensure as a future option without making it an immediate priority.
   

Your path doesn’t have to be permanent. Many professionals start in public accounting and transition to corporate roles after three to seven years, and the reverse is possible with the right specialization.

Early in your career, it may be more useful to focus on which environment fits the next two to three years rather than mapping a longer-term path.

Take the next step on your accounting path

Whether you’re still weighing your options or ready to move forward, an online accounting program can help you take the next step toward your goals – from building a foundation in accounting to preparing for CPA licensure.

Capella University offers an online BS in Business, Accounting in two learning formats.

FlexPath is a self-paced format that allows you to take one or two courses at a time and set your own deadlines within each 12-week billing session. GuidedPath follows a structured schedule with fixed weekly deadlines and 24/7 access to your courseroom.