What is a CPA (Certified Public Accountant)?

While all CPAs are accountants, not all accountants are CPAs. Only those who have met their state’s educational, ethics and work experience requirements and have passed the uniform CPA exam can call themselves a CPA. There are certain jobs within the field of accounting that only a CPA can do, making earning your CPA license something to consider if you’re looking to pursue these types of roles.

Accountants, on a basic level, maintain and analyze financial records. Accountants may work in a variety of industries, and may assist with financial planning, investment strategy or keeping track of a company’s financial information. They use methods such as generally accepted accounting principles (GAAP), a common set of accounting rules, standards and procedures for financial reporting issued by the Financial Accounting Standards Board. Public companies in the United States must follow GAAP when their accountants compile their financial statements.

There are several different types of accountants, each with different areas of focus and responsibilities such as tax accounting, financial accounting and forensic accounting.

But what’s a CPA, and how is being a CPA different from being an accountant? A CPA can do everything a non-certified accountant can do, but they are also able to work in specialized areas of accounting such as consulting, financial planning and litigation consulting. CPAs, unlike uncertified accountants, can also set up their own accounting firms.
 

CPAs may be responsible for a variety of different accounting tasks. Some common CPA responsibilities include:

Depending on the state or territory you will be working in, you’ll be required to meet criteria in 4 key areas. Before taking the CPA exam, you must check with your state or jurisdiction’s board of accountancy to ensure you’ve completed the required credit hours and coursework for your jurisdiction. Requirements for taking the CPA exam and obtaining licensure include:

Completing your education and preparing for the exam is a unique journey. However, the following steps may be helpful as you prepare for the CPA exam:

Let’s take a deep dive into the uniform CPA examination.

According to the National Association of State Boards of Accountancy (NASBA), the test has 4 sections. Each section is a rigorous assessment of the minimum technical knowledge and skills required for licensure:

Each section of the exam is taken separately. CPA candidates are given a maximum of 4 hours to take each section, for a total of 16 hours of testing time. Candidates are allowed up to 18 months to pass all 4 exam sections, which begins at the time that they pass their first exam section.

Section scores are reported on a scale from 0 to 99. A total reported score of 75 or higher is required to pass each section.

The exam is administered continuously throughout the year, allowing candidates to take the test when it’s most convenient for them.

Once you’ve passed all 4 exam sections, you should verify whether your jurisdiction requires you to take a separate ethics examination before applying for your state-issued CPA license.
 

AICPA members are bound by a 5-article Code of Professional Conduct, requiring them to adhere to a code of ethics that includes:

To earn your CPA designation, you’ll need to meet several requirements in education, testing and licensure as established by the profession and license-granting jurisdictions. If you are planning to seek professional licensure as a CPA, it is strongly recommended that you contact the appropriate licensing entity (in most cases the state board of accountancy) in the state in which you plan to practice in order to seek information and guidance regarding licensure requirements.

According to the AICPA, accounting professionals who are CPAs or prospective CPAs can choose from a variety of career pathways in the accounting industry.

Since every career path is unique, the benefits of becoming a CPA will vary from person to person. In addition to adding the title of CPA to your resume, you may find that you meet the qualifications for more opportunities that interest you. In fact, according to the U.S. Bureau of Labor Statistics, accountant and auditors who pursue licensed CPA status may potentially improve their job prospects.²

Take the first step toward your future goals by advancing your education. If you’re new to the industry, our Undergraduate Accounting Certificate or Bachelor's Degree in Accounting can be a great place to start. If you’ve already earned your undergraduate degree, explore our accounting-related master’s degree and graduate certificate programs, some of which can help you prepare to pursue your CPA certification with built-in CPA exam prep1 from Becker Professional Education.