This article clarifies these distinctions, showing each professional’s unique purpose in managing financial affairs. In most states, you do not need to major in accounting to meet CPA education requirements. However, an accounting bachelor’s or master’s degree offers the most direct and relevant preparation for CPA certification and licensure. The process of becoming a CPA typically begins with earning a bachelor’s degree in accounting. CPAs require licensure and can perform specialized roles, which may earn them higher wages and more career opportunities. However, becoming a CPA takes longer and costs more than it does to become an accountant.

To become a licensed Certified Public Accountant (CPA), you must meet the education, examination, and experience requirements. All candidates must pass the Uniform CPA Examination ® (CPA Exam), which consists of three four-hour Core sections and one four-hour Discipline section of your choice. The Core sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). The Discipline sections are Business Analysis and Reporting (BAR), Information Systems and Control (ISC), and Tax Compliance and Planning (TCP).

What specializations can CPAs have?

Many CPAs are members of the American Institute of Certified Public Accountants and their state CPA society. These figures represent the latest available data for accountants and auditors, with CPAs typically earning at the higher end of these ranges due to their specialized credentials and expanded scope of practice. Location significantly impacts earning potential, with major metropolitan areas and financial centers offering the highest compensation packages. Peruse CPA certification requirements to learn about the education, experience, and exams you need to become a certified public accountant. Explore certified public accountant salary data and trends with this career resource for accounting students and professionals. However, an accounting master’s degree can help students meet the CPA education requirement of 150 credits since most bachelor’s programs only require 120 credits.

• An accountant prepares, analyzes, and manages financial records—everything from bookkeeping to financial statements and budgeting.
• Their training, licensing, and ongoing education equip them to handle complex financial and tax matters.
• While not required, many CPA candidates choose to pursue a master’s degree to fulfill the additional 30 credits.
• While every state requires work experience to qualify for CPA licensure, the exact number of hours needed varies.
• I was fortunate to get a job offer from a midsize CPA firm in New England while I was a senior in college, and I spent many years working there as an auditor.

Technically, you can become a CPA without a degree in accounting, but you still need to complete the minimum number of credits in the discipline as determined by your state’s board of accountancy. After you complete the required accounting credits, you’ll likely have enough to qualify cpa vs accountant as an accounting major anyway. In many cases, there are also minimum credit requirements for business, finance, statistics and economics courses.

To obtain a CPA license, you must complete 150 credit hours of education, obtain 1-2 years of professional experience, and pass the four-part CPA exam. From there, you can apply for a CPA license with your state board of accountancy. Their work requires extensive knowledge of financial systems, strong analytical skills, and the ability to translate complex financial data into actionable insights for clients and organizations.

Whether working independently or as part of a larger firm, CPAs must maintain high professional standards while staying current with evolving financial regulations and industry best practices. Accountants may work in various industries, including public accounting firms, private businesses, government agencies, and non-profit organizations. They may specialize in specific areas, such as tax accounting, management accounting, or forensic accounting. While both accountants and CPAs handle financial matters, their roles and responsibilities vary depending on their qualifications and areas of expertise.

Core sections test the ability to understand, apply, analyze and evaluate the foundational topics a newly licensed CPA is expected to know. Also, candidates must pass one of three Discipline sections to gain specialized knowledge in more advanced topics. CPAs work across all industries, with the highest concentrations in public accounting firms, financial services, healthcare, manufacturing, government, and technology companies. The versatility of CPA training allows for career mobility across sectors. Forensic accounting focuses on the investigation of potential fraud and financial crimes, such as embezzlement.

Please be aware, the privacy policy may differ on the third-party website. Adtalem Global Education is not responsible for the security, contents and accuracy of any information provided on the third-party website. Note that the website may still be a third-party website even the format is similar to the Becker.com website. Even though most people use CPA certification and CPA license interchangably, there isn’t a recognized CPA certification. Because it’s regulated by the state, you’re working toward your CPA license not certification.

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.

However, all states mandate that you pass all four sections within a limited time — usually 18 months. Every state includes a passing score on the CPA exam among its CPA certification requirements. This rigorous standardized exam, developed and administered by the Association of International Certified Professional Accountants, occurs in four sections. CPA Portal is NASBA’s headquarters for the Uniform CPA Examination, serving those who wish to take the Exam in a jurisdiction supported by CPA Examination Services (CPAES), NASBA’s flagship program.

What Does a CPA Do? Tasks, Skills, and How to Become One

Over the past decade, Doug has researched and written extensively about academic programs, licensure and certification, labor markets, and emerging trends in student success. Before joining the Forbes Advisor team, his work was regularly featured on Red Ventures’ higher education websites, including NurseJournal.com, BestColleges.com, and Psychology.org. Work toward CPA licensure by building foundational or specialized knowledge in accounting on Coursera. Whether you want to develop a new skill, get comfortable with an in-demand technology, or advance your abilities, keep growing with a Coursera Plus subscription. It’s important to note that states have different CPE requirements and deadlines. For example, states have different requirements for the number of hours of ethics CPE you’ll have to do, and accept various types of education.

• It is generally equivalent to the title of chartered accountant in other English-speaking countries.
• We believe everyone should be able to make financial decisions with confidence.
• You will need to complete a minimum number of documented CPE hours each renewal period to maintain your license eligibility.
• A CPA is a natural career progression after you have gained experience as an accountant and have prepared to seek state licensure.
• CPA regulatory oversight is more stringent, with state boards enforcing professional conduct rules and requiring ongoing education.

Another growing role for CPAs is with law enforcement agencies, helping to investigate financial crimes or other crimes that leave a financial trail. In the United States, financial reporting specialists typically follow a set of guidelines known as generally accepted accounting principles. If you work outside the United States, you are more likely to use the International Financial Reporting Standards system. As a management accountant, you can pursue a certified management accounting (CMA) credential from the Institute of Management Accountants.

CPAs may work in areas such as financial accounting and reporting, management accounting, tax accounting, and internal auditing. Public accountants can work for individuals, companies, nonprofits, or the government. They may specialize in areas like taxation, financial reporting, consulting, auditing, and forensic accounting. They frequently work overtime during busy times of year, including tax season.

They help organizations avoid penalties, audits, and financial mismanagement. CPAs often serve as trusted advisors, guiding clients on financial matters, such as investments, mergers and acquisitions, business structuring, and risk management. Their strategic insights help businesses make informed financial decisions that drive growth and profitability. Ultimately, if your financial needs require higher levels of expertise, a CPA offers added value with specialized services that accountants may not provide.