If you’re thinking about earning an accounting degree—or going back to school for a master’s—you’ve probably asked yourself, “Should I become a CPA? The choice can shape the kind of work you do, the industries you work in, and how far you can advance in your career. Simply put, they’re accountants who are licensed to handle more regulatory tasks.

For routine financial record-keeping or simple tax filings, an experienced accountant or a CPA may be suitable. CPA regulatory oversight is more stringent, with state boards enforcing professional conduct rules and requiring ongoing education. This oversight provides additional protection and assurance for the public. Accountants typically need a bachelor’s degree in accounting or a related field.

However, the specific amount of upper-level accounting courses, business courses, and other requirements are left to individual states. Yes, CPAs can work internationally, though additional certifications or qualifications may be required depending on the country. Many multinational corporations value CPA credentials for international assignments and cross-border financial reporting. For many years, I worked in public accounting as an auditor and consultant. I really enjoyed working on various types of projects with different clients. I worked with many different not-for-profit organizations and found that I have a passion for mission-driven organizations.

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.

Educational Requirements

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 as an accounting major anyway. In many cases, there are also minimum credit requirements for business, finance, statistics and economics courses.

Can CPAs work internationally?

This distinction not only affects the scope of work they can perform but also impacts their authority and the trust placed in their financial assessments. Some states also accept postsecondary teaching experience, but you cannot normally use education as a substitute for experience or vice versa. According to the National Association of State Boards of Accounting (NASBA), there were nearly 672,000 licensed CPAs in the United States as of August 2024. Demand remains high, as the Society for Human Resource Management documented a significant shortage of CPAs in the U.S. labor market in 2023. With Guideline Pro, you get tools and expertise to help guide clients to a secure…

• A double major that features 150 credits or more could also fit the bill.
• Both professionals engage in bookkeeping, general tax preparation, and financial analysis.
• Becker has outlined the CPA requirements by state and territory to help make it easy to understand what you need.
• Such services may include cash management, budgeting, and financial accounting analysis; preparing financial statements; insurance coordination and risk management; investment guidance; and estate planning.
• I would encourage students starting out in accounting to spend some time investigating their career options and talk to other people in the industry to get a sense of the best career fit for them.

See details about Atomic Brokerage in their Form CRS, General Disclosures, fee schedule, and FINRA’s BrokerCheck. However, a few states offer a CPA cpa vs accountant 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.

Both accountants and CPAs bring essential skills to the table, but a CPA’s certification enables them to take on more complex roles like audit sign-offs and IRS representation. Deciding between an accountant and a CPA depends on the complexity of your financial needs. Accountants are skilled at managing day-to-day finances, tax preparation, and reporting, which suits personal finances or small businesses with straightforward requirements. One of the main distinctions is that CPAs can perform and sign off on audits and reviewed financial statements. This authority is particularly important for businesses needing audits for regulatory compliance or investor assurance. Accountants without CPA credentials are generally not authorized to sign audited financial reports, limiting their ability to offer this service.

Is it hard to get CPA certified?

Also, CPAs are often eligible for higher-ranking roles within organizations, including senior management all the way to CFO. Just as a law license defines a lawyer, the CPA license tells the public that an accountant has mastered the critical elements of the profession. May 2024 Bureau of Labor Statistics salary data for Accountants and Auditors reflect state and national data, not school-specific information. More important than your grades in school or how many hours you spend at a desk is whether this type of work interests you. If you don’t mind analytical work, managing complex projects, or thinking strategically about financial challenges, then becoming a CPA might be the right career choice for you. Modern CPAs must develop a comprehensive skill set that extends far beyond traditional accounting knowledge.

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.

Check with your state’s board of accountancy for the specific educational requirements in your state or territory. A degree is often required to be an accountant, and the same holds true for CPAs. Some CPAs choose to earn their master’s degree either independently or as part of a combined program with the bachelor’s, which satisfies the additional 30 credit hours. While accountants can prepare taxes, CPAs specialize in optimizing tax strategies, helping businesses and individuals minimize tax liabilities and maximize deductions. CPAs also stay updated on tax law changes, ensuring compliance and identifying financial planning opportunities.

Modern audit practices increasingly incorporate data analytics and technology-driven testing procedures. Explore the rest of our guide to learn about typical CPA job tasks and responsibilities, CPA areas of expertise, and CPA salaries and career outlook. We also explain the education and experience requirements needed to become a CPA. You can advance your CPA career in many ways, including by earning an advanced degree, such as an M.B.A. or even a doctorate. Some employers and roles may even require an advanced degree or additional professional certifications. Salaries for accountants and CPAs can vary significantly based on factors such as experience, location, industry, and the specific responsibilities of the role.

• There are some workplaces that don’t want to consider someone for an accounting role who is not a CPA.
• In most states, candidates can sit for the exam once they finish their bachelor’s degree.
• All states require at least one year of accounting experience to obtain licensure.
• Your next challenge involves maintaining your credentials through the license renewal process.

While the upfront cost may be higher, the value a CPA brings can significantly outweigh the expense, especially if your business is facing complex financial issues or planning for future growth. It’s important to weigh the potential return on investment when deciding between hiring an accountant or a CPA. A CPA is not a degree — it is a professional designation involving a certification and licensing process. To meet educational requirements, you will need a minimum of a bachelor’s degree, which typically requires four years to complete.

To receive a CPA license, applicants must pass the CPA exam administered by the National Association of State Boards of Accountancy. To become a licensed CPA, you must pass the CPA Exam, a four-section, 16-hour assessment. The following organizations can help you as you work toward CPA licensure and move throughout your career. Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact… Some states require CPA candidates to be at least 18 to 21 years old, and a few require that you’re a citizen or permanent resident.