What Is A CPA? 13 Types Of Certified Public Accountants Tax Preparation & Accounting Services

CPAs and accountants are not the same, although both work in accounting. CPAs, or Certified Public Accountants, have met specific licensing requirements, including education, experience, and passing the CPA exam. While all CPAs are accountants, not all accountants are CPAs, making the CPA title a mark of higher expertise and professional standing. To become a CPA, individuals must meet specific education and experience requirements, as well as pass the Uniform CPA Exam.

• Compounding this problem, approximately 75 percent of the members of the American Institute of Certified Public Accountants (AICPA) are eligible for retirement2.
• One important quality in being a successful CPA is genuinely caring about your clients and their businesses.
• These requirements vary by state, but most states require a minimum of a bachelor’s degree in accounting or a related field.
• The most common way to start the journey toward becoming a CPA is to earn a bachelor’s degree in accounting or a closely related field.
• CPAs also provide assurance services, which involve evaluating a company’s internal controls and providing recommendations for improvement.

Financial Reporting and Compliance

While consulting at Enron, Arthur Andersen CPAs did not maintain independence and performed both consulting services and auditing services, which violates the CPA code of ethics. CPAs have a wide range of career options available in public accounting (that is, working for an accounting firm), corporate accounting (working inside a company), or government service. Individuals with the CPA designation can also move into executive positions such as bookkeeping and payroll services controller or chief financial officer (CFO).

• Each state has its own guidelines, but most follow a standard set of expectations.
• To receive a CPA license, applicants must pass the CPA exam administered by the National Association of State Boards of Accountancy.
• That could mean doing a double major, taking additional college classes, or earning a master’s degree.
• Discover what a CPA is, what they do, and how to become a certified public accountant.

Passing the CPA Exam

To prepare for the CPA Exam, most candidates enlist the help of a CPA review course. UWorld offers the best CPA Review on the market with tools created to save you time and ensure you pass. More importantly, as a working professional, you can finish your degree faster at Franklin by transferring qualified prior college credits and/or work experience. In fact, the average passing rate in 2021 was, according to AICPA, just under 50 percent for all four sections what does a certified public accountant do of the exam. Earning your initial CPA license is a major professional accomplishment.

Top responsibilities for CPAs in public accounting include:

Their involvement spans various educational settings, including business schools, professional schools of accountancy, graduate programs, and community colleges. CPAs are required to participate in adjusting entries continuing education to maintain their license and stay current with changes in the accounting profession. This ensures that they are equipped with the necessary knowledge and skills to provide quality services to their clients. In many states, candidates with a degree in any subject can become CPAs if they meet the educational requirements, which often include specific accounting and business courses.

This helps me keep current on issues happening in the industry and new accounting pronouncements. As a college student, I learned and liked that accounting is the basis and building block of many financial and business decisions. And I liked that there are lots of different job options and that I would not be unemployed after graduation. 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. Management accountants specialize in translating financial information into actionable insights that businesses can use to their strategic advantage.