By: The Capella University Editorial Team
Reading Time: 5 minutes
While all CPAs are accountants, not all accountants are CPAs.
A CPA, or certified public accountant, is an accountant who has met specific state and education licensing requirements and passed the CPA exam. Because of that added credential, the CPA designation is often seen as a strong distinction in the accounting profession.
If you’re exploring accounting career paths, it can be helpful to understand how these roles overlap and where they differ. Here’s a closer look at four differences between CPAs and accountants.
One of the clearest differences between accountants and CPAs is licensure.
CPAs must meet state-specific requirements before they can practice as licensed certified public accountants. While exact standards vary by state, candidates generally need to complete the required college-level coursework, earn a qualifying degree, gain relevant professional experience and pass the Uniform CPA Examination.
After graduation and a year of experience under the supervision of a CPA, candidates must pass a comprehensive exam that covers areas such as auditing, taxation, business concepts and financial accounting.
Licensure is not a one-time milestone. After becoming licensed, CPAs are typically required to complete continuing professional education throughout their careers to stay current with industry regulations, standards and changes in the accounting field.
Another important distinction involves the types of responsibilities a CPA may hold.
Many organizations that are required to have a financial statement audit or review will need to work with a CPA to perform those services and issue the associated reports.
In addition, CPAs have a fiduciary duty when serving clients in certain roles. That means they are expected to act ethically, responsibly and in their clients’ best interests within the scope of their professional duties. Non-CPA accountants may provide valuable accounting services, but they are not under the same legal obligation.
Accountants who are not CPAs may still prepare tax returns and support individuals or businesses with important accounting tasks. However, the CPA credential can offer additional advantages in tax and regulatory matters.
Because CPA licensure requires rigorous exam preparation and ongoing continuing education, many CPAs develop deep familiarity with tax rules, reporting standards and compliance expectations.
A CPA may also be able to represent clients before the IRS, depending on the situation and applicable rules. That can be especially valuable if audit support or formal representation is needed.
The CPA credential involves more than passing an exam and receiving a license.
CPAs are also expected to follow professional standards and codes of ethics established by state boards and the profession. These expectations help guide how CPAs approach independence, objectivity, confidentiality and professional conduct.
Because state requirements can differ, aspiring CPAs should review the rules in the state where they plan to practice. Understanding those expectations early can help you plan your education and career path more effectively.
Both accountants and CPAs play important roles in helping organizations and individuals manage finances, meet reporting obligations and make informed decisions.
For some professionals, becoming a CPA can open the door to expanded responsibilities, stronger career differentiation and opportunities in areas such as auditing, taxation and advisory services. For others, a broader accounting path may align well with their goals and interests.
If you are considering a future in accounting, building your educational foundation is an important first step.
Learn more about the CPA certification, including requirements, exam and licensure.
Capella University offers online degree programs designed to support students as they pursue academic and professional goals. You can explore options in business and accounting and find a path that fits your schedule and career plans. Learn more about what you could do with a BS in Business, Accounting degree.
An accountant works with financial records, reporting and related business tasks, while a CPA is an accountant who has met state licensing requirements and passed the CPA exam.
No. Only professionals pursuing CPA licensure need to pass the CPA exam.
Yes. CPAs must complete continuing education throughout their careers to stay current on accounting, tax and regulatory changes.
Fiduciary responsibility means having a legal duty to act on behalf of and in the best interest of a client. CPAs are considered fiduciaries, while accountants without CPA certification are not.
Yes. An accountant without CPA certification may prepare a proper tax return, but a CPA may offer broader expertise and additional representation rights.
Not always. CPA licensing requirements are set by state, so details can vary depending on where a person intends to practice.
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