Ever wondered who you should trust more with your numbers, CPA or an accountant? Many people think accountants and CPAs are the same. In reality, their roles differ and so do their impact.
This guide discusses the main difference between a CPA and an accountant.
You will also learn:
-Which companies mandate a CPA, and which are okay with just an accountant.
-The kind of work you need a CPA for, and the kind you don’t
-Can accountants do tax returns?
–The market pressures of a CPA credential
-Are accountants really paid less than CPAs?
-And so much more
Let’s get started.
Is a CPA Different From an Accountant?
No, a CPA is not different from an accountant. All CPAs are accountants. The key distinction is that a CPA has met strict state requirements, including completing advanced education in accounting, gaining relevant work experience, and passing the CPA exam. This license sets them apart from non-CPA accountants, who may simply work in accounting-related jobs and, in some cases, might not even have a formal background in accounting.
Essentially, the CPA designation is a way to demonstrate proven expertise and credibility in the field.
“A good bookkeeper doesn’t record numbers; they show what’s happening with your money.” — Jane Smith, Financial Consultant and Business Coach
CPA Vs. Accountant
Accountants handle books, taxes, and reports. They usually have a bachelor’s degree and manage daily financial tasks. CPAs do all that plus audits, IRS representation, and advanced financial advice.
Here’s an example of a scenario when a company will require a CPA instead of an accountant: A small bakery hires an accountant to manage daily sales, expenses, payroll, and monthly reports. Everything runs smoothly until they apply for a business loan. The bank asks for audited financial statements, something only a CPA can prepare and sign.
That’s when the bakery realizes they need a CPA to review accounts, check accuracy, and prepare reports that meet official standards.
It’s common for businesses to hire an accountant, thinking they can handle everything a CPA does. But only a CPA can:
- Perform official audits for public companies
- Represent clients before the IRS
- Provide specialized financial guidance with credibility
Responsibilities
Accountants handle daily money tasks. They track transactions, check accounts, make reports, manage budgets and taxes, and follow rules. They work with integrity but aren’t licensed, and tasks can vary by employer.
CPAs do everything accountants do, plus tasks requiring a license. They prepare audited SEC statements, represent clients in IRS audits, conduct external audits, file and sign tax returns, advise on risk, manage finances, and help reduce taxes.
A license and strict ethical rules make CPAs trusted accounting experts. Their training and credibility make them valued in top firms and the public sector.
CPAs Are Paid More Than Accountants
One of the clearest differences between CPAs and accountants shows up in career mobility and pay. While accountants without the CPA license can still build successful careers, not having those three letters after your name can quietly hold you back from promotions and salary jumps.
Within US companies where a CPA technically isn’t required, senior accountants without the credential often stay stuck in the same role for 4–5 years, while CPAs from Big Four firms are hired directly into higher-level management roles.
This difference isn’t always written into job descriptions or advertised on career pages. It’s often unspoken, but very real. A CPA doesn’t just signal technical knowledge, it signals commitment, credibility, and trustworthiness to leadership, which directly translates to career advancement.
The financial impact of this can be massive. Missing out on promotions or raises can easily cost you tens of thousands of dollars every year.
Accountants earn good pay, but CPAs make 10%–25% more on average.
Education and Licensing
Accountants need a bachelor’s in accounting, finance, or business and can start working right after graduation. They can also earn extra certifications like CFA, CMA, CIA, or CFE to advance.
CPAs must complete 150 college credits, often with a master’s, pass the CPA Exam, gain work experience, and get a state license. They must also do yearly continuing education. Each state has its own rules, but most let international candidates apply.
As states create alternative pathways to the 150-hour CPA licensure requirement, it’s important to understand the changes that affect what it takes to become a licensed CPA.
Job Demand: Which One Has More Jobs?
The future is strong for accountants and CPAs. The BLS expects accounting jobs to grow 7% by 2030. There are over 170,000 jobs for accountants with a bachelor’s and 46,000+ for CPAs. A CPA often gives an edge, even when not required.
CPAs usually work in public accounting, government, or specialized areas like tax, audits, and business consulting. Accountants without a CPA usually work for one company in auditing, budgeting, or tax tasks. A CPA license opens more doors and higher-level roles.
Code of Ethics and Professional Standards
Another big difference is accountability.
Accountants: No central governing body. They must be honest, but there are no universal rules for them.
CPAs: Must follow strict ethical rules from the AICPA.
- Acting responsible and professional.
- Serving the public interest.
- Working with honesty and integrity.
- Remaining goal and avoiding conflicts of interest.
- Keep learning and follow strong ethical rules.
Exam and Licensing Costs
Becoming a CPA is more expensive than becoming an accountant. CPA costs may include:
- Exam application fees: $30–$200
- Exam fees: about $950
- Review courses: $1,200–$3,600
- Retakes/reschedule: $50–$200+
- Ethics exam: $150–$250
- License: $100–$500
- Continuing education: $0–$300 per year
In contrast, accountants mainly pay for their degree and optional certifications.
Legal Authority
Accountants follow general rules but have no special legal authority.
CPAs have extra legal power. Only CPAs can check public company accounts and deal with the IRS, so businesses with strict rules need them.
Ethics
All accountants should be honest, avoid conflicts, and keep information safe.
CPAs follow strict rules from the AICPA. Breaking these rules can lead to losing their license. This ensures CPAs work with integrity and care.
When to Hire an Accountant or CPA?
Accountants help plan businesses and pick a business type. They assist in getting loans and organizing money and taxes. They handle daily tasks like payroll and invoices. They also aid small business owners with personal finances.
CPAs do harder work, like handling IRS audits, back taxes, complex tax returns, giving financial advice, and planning taxes. Accountants are enough for many small businesses, but CPAs add extra skills and trust.
CPA vs. Accountant: Simple Comparison
Other Key Differences
- IRS Representation: CPAs can represent clients before the IRS. Accountants cannot.
- Fiduciary Duty: CPAs must follow the law and always act for their clients’ best interest. Accountants do not carry this legal responsibility.
- Career Opportunities: CPAs work in public firms, government, big companies, and forensics.
Final Thoughts
Both accountants and CPAs are important. CPA vs accountant: CPAs have more education, pass exams, and hold a license, so they get more trust, responsibility, and pay.
Becoming a CPA gives more pay, flexibility, and special work. Accounting is still a good, stable job without a CPA.
All CPAs are accountants, but not all accountants are CPAs.
A bachelor’s degree can start a stable accounting career. But for higher pay, more credibility, and access to specialized roles, getting a CPA license is worth it.
Hiring accountants or CPAs can be expensive for small businesses, slowing growth and revenue.
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FAQs
1. Who can sign audited financial statements?
Only a Certified Public Accountant can sign audited financial statements. An audit is a thorough review of a firm’s financial records. It makes sure everything is accurate. It also ensures the company follows the rules. Non-CPAs, even skilled accountants, cannot sign these because they are not licensed.
Signing an audit comes with responsibility. CPAs follow strict rules to stay honest and independent. They report any mistakes and can face penalties if they don’t.
Audits are usually required for public companies, banks, or investors. Hiring a CPA shows your business is trustworthy.
Only CPAs can sign audited financial statements. This is one big difference between CPAs and accountants.
2. Can someone who isn’t a CPA do my tax return?
Yes, someone who isn’t a CPA can prepare taxes if they have an IRS Preparer Tax ID (PTIN). They can manage basic tax returns for individuals and businesses.
But non-CPAs cannot portray you in an IRS audit. Only a CPA or an enrolled representative can address complex taxes or an audit for you.
CPAs have more education and training, which helps them find tax savings and give advanced advice. For simple tax returns, a non-CPA may be enough. For complex business or personal taxes, a CPA is safer.
Non-CPAs can do taxes, but CPAs give more safety, advice, and trust.
3. Accountant vs. Bookkeeper: What’s different?
Bookkeepers track daily cash like bills, sales and payments. They organize all financial data. Bookkeepers record, accountants analyze and advise. Bookkeepers may only need basic training or certification. Bookkeepers maintain records.
Accountants use the data to make reports, do taxes, check finances, and give advice. They also help plan for the future. Accountants usually have a degree, and CPAs have extra qualifications. Accountants interpret them to make business decisions.
4. Do CPAs handle bookkeeping too?
Yes, CPAs can do bookkeeping, but they usually do more. They can record transactions. CPAs are most valuable for analyzing money, giving advice, planning taxes, and checking records.
If you hire a CPA for bookkeeping, you get accuracy, trust, and rule-following.
CPAs can do bookkeeping, but their main job is giving financial advice, not only entering data.