They work in areas like insurance claims, financial disputes, and criminal investigations, bringing a specialized skill set that requires certification. Accountants may contribute to similar tasks but usually lack the training or credentials for in-depth forensic investigations. While the outlay can add up, many professionals find the long-term earnings and broader opportunities outweigh the upfront cost—especially if your goal is to move into higher-paying leadership or specialized roles. Application fees and the four exam sections together can cost between $1,000 and $1,500. Additionally, many candidates invest in a CPA review course, which can cpa vs accountant range from $1,000 to $3,000.
CPA Career Advancement
- There isn’t one single answer to how to become a CPA as all states have slightly different requirements.
- Before you apply, you need to make sure you meet the state requirements to sit for the exam.
- While both accountants and CPAs handle financial matters, their roles and responsibilities vary depending on their qualifications and areas of expertise.
- We then had a Zoom call to discuss our questions for each other and the next steps toward finishing the close.
- I like that the debits always have to equal the credits, and the balance sheet has to balance.
- I worked with many different not-for-profit organizations and found that I have a passion for mission-driven organizations.
Our partners cannot pay us to guarantee favorable reviews of their products or services. When we answered the question, “What is a CPA?” at the beginning of the article, we mentioned meeting state requirements. There isn’t one single answer to how to become a CPA as all states have slightly different requirements. There is currently a shortage of accountants as fewer students major in accounting1 and even fewer accountants choose to become CPAs. Compounding this problem, approximately 75 percent of the members of the American Institute of Certified Public Accountants (AICPA) are eligible for retirement2. Thus, the shortage could become significantly worse before it gets better.
This authority allows CPAs to navigate tax disputes and advocate for taxpayers during examinations or collections. While both prepare tax returns, only a CPA can officially represent a taxpayer before the federal tax agency. Both professionals engage in bookkeeping, general tax preparation, and financial analysis. Some states have seen a push to reduce the educational requirements from 150 credits to the 120 credits covered in most standard bachelor’s degree programs. In January 2025, these efforts were first codified into law in Ohio when state officials abolished the firm 150-credit requirement. The path to becoming a CPA requires careful planning and dedication, but offers substantial career rewards and professional recognition.
Accountants may pursue further education but are not required to meet the same standards. This ongoing training enables CPAs to provide up-to-date advice and maintain high professional standards, especially in areas involving compliance. CPAs are authorized to represent clients before the IRS, making them the go-to experts for tax issues. They assist with audits, appeals, and tax resolution cases, offering a layer of protection and expertise that accountants without CPA certification may not provide. This authority can be vital for individuals or businesses facing complex tax situations.
- They organize financial information and prepare standard financial reports.
- The following subsections offer a detailed overview of the “three E’s” and how each requirement can help you advance toward CPA licensure.
- CPAs perform specialized financial services that non-licensed accountants cannot legally provide, including auditing public companies and representing clients before the IRS.
- After completing his master’s in English at York University, he began his writing career in the higher education space.
By holding multiple certifications, you can combine the benefits that come with CPA licensure and elevate your appeal to a broader cross-section of potential employers. You will need to complete a minimum number of documented CPE hours each renewal period to maintain your license eligibility. However, as NASBA notes, state-level rules are complex and subject to change.
Always check the current standards that apply in the jurisdiction where you plan to practice. To become a CPA, you need more education, experience, and credentials, which makes it more time-consuming and costly than becoming an accountant. However, CPAs can pursue higher salaries and more advanced professional opportunities than accountants. It typically takes about 5-8 years to become a CPA, including four years for the bachelor’s degree, possible 1-2 years for the extra credits, and 1-2 years for the experience component. CFOs set a financial direction for organizations, including creating financial plans, policies, and practices for everyone to follow.
These services provide assistance with supervising and managing an organization’s or individual’s day-to-day activities and providing strategic and long-range planning. Such services may include cash management, budgeting, and financial accounting analysis; preparing financial statements; insurance coordination and risk management; investment guidance; and estate planning. Assurance services are independent professional services that improve the quality or context of both financial and nonfinancial information for decision makers. Auditing is an objective evaluation of financial and economic information to ensure accuracy and compliance with criteria such as generally accepted accounting principles (GAAP).
How to Become a Certified Public Accountant
It’s always best to check your state’s rules and regulations before starting your CPE. Learn more about what CPAs do, how they differ from accountants, and how to become one. Afterward, build your accounting knowledge with the University of Illinois’ Fundamentals of Accounting Specialization.
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.