While the terms "CPA" and "accountant" are often used interchangeably, there are important differences that affect the services they can provide.
What is an Accountant?
An accountant is anyone who performs accounting work such as:
- Bookkeeping and record-keeping
- Preparing financial statements
- Tax preparation
- Basic financial analysis
No specific license is required to call yourself an accountant, though many have accounting degrees.
What is a CPA?
A Certified Public Accountant (CPA) has met rigorous requirements:
- Education: Typically 150 credit hours (more than a bachelor's degree)
- Examination: Passed the Uniform CPA Exam (four sections)
- Experience: Completed required work experience
- Licensing: Licensed by a state board of accountancy
- Continuing Education: Must complete ongoing education to maintain license
Key Differences
Services Only CPAs Can Provide
- Represent clients before the IRS in audits
- Sign audit reports and attest to financial statements
- Provide certain assurance services
- File reports with the SEC
Accountability
CPAs are held to professional standards and ethical codes. They can lose their license for misconduct, providing an extra layer of protection for clients.
When Do You Need a CPA?
Consider hiring a CPA when you:
- Own a business
- Have complex tax situations
- Need audit representation
- Require certified financial statements
- Want ongoing tax planning advice
Find the Right Professional
All professionals listed on ListMyCpa.com are verified CPAs, ensuring you receive qualified assistance. Start your search today.