The terms CPA and accountant often get tossed around interchangeably, but they describe 2 different things. Learning the distinction is a must if you’re thinking about a career in accounting.
Accountants offer a broad range of services, including accounting, tax prep, and bookkeeping. A certified public accountant (CPA) does much of the same work but holds a state-issued license that signals a higher level of training and professional accountability.
CPAs have passed the CPA exam and obtained a license from their state’s board of accountancy. Many CPAs follow a 150-semester-hour education path with at least 1 year of experience, but requirements vary by state. Some jurisdictions recognize alternative pathways involving fewer credits.
Here, we explore how the accountant and CPA career paths stack up and how to decide which direction makes sense for you.
Key Points
- The core difference between an accountant and a CPA is licensure. CPAs meet higher education and experience requirements and are held to stricter professional and ethical standards.
- The US Bureau of Labor Statistics (BLS) reports a median annual wage of $81,680 for accountants and auditors.
- CPAs earn roughly 10–15% more on average than non-licensed peers, according to the American Institute of Certified Public Accountants (AICPA).
- Many CPAs start as general accountants, and the experience gained along the way can count toward licensure requirements.
What Is an Accountant?
An accountant is a financial professional who handles bookkeeping, accounting, and tax prep. Tax prep requires an IRS-issued Preparer Tax Identification Number (PTIN), but the role isn’t governed by a licensing standard beyond that.
Accountants generally have at least a bachelor’s degree in accounting or a related field. Some employers prefer candidates with master’s degrees, particularly for more advanced roles. In some cases, those with an associate degree or relevant experience in bookkeeping or accounting support can move into junior positions and grow from there.
Career paths into accounting vary. Some professionals build experience inside CPA firms, starting in bookkeeping or administrative roles before moving into broader accounting work.
Some accountants pursue additional credentials to specialize. The enrolled agent (EA) designation, issued by the IRS, is a common one. EAs are federally licensed to represent taxpayers before the IRS, making it a strong credential for anyone focused on tax work specifically.
Key Responsibilities
Accounting is a broad term that covers a range of services. Core responsibilities typically include:
- Recording and organizing financial transactions, including accounts payable and receivable
- Reconciling accounts and maintaining accuracy across financial records
- Preparing financial statements and reports
- Assisting with tax preparation
- Analyzing cash flow and preparing budgets
- Sending, tracking, and managing invoices
- Identifying discrepancies or inefficiencies in financial records or accounting systems
- Recommending ways to reduce costs or improve financial operations
Common Career Paths
Some accountants work for private companies, often in finance or insurance. Others work for nonprofits or government organizations. And some work solo, providing their services directly to clients.
Common career paths include:
- Staff or in-house accountant
- Bookkeeper
- Accounting clerk
- Payroll specialist
- Budget analyst
- Tax preparer
What Is a CPA?
Certified public accountants are accounting professionals who’ve obtained a license granted by their state’s board of accountancy. They’ve also passed the Uniform CPA Exam.
The CPA credential signals a higher standard of training and professional accountability than an unlicensed accounting role. CPAs work across auditing, taxes, financial analysis, and reporting. Many serve as trusted advisors to businesses and individuals navigating complex financial decisions.
Key Responsibilities
CPAs perform many of the same tasks as general accountants, but their license expands the scope and the stakes of their work. Responsibilities that fall within CPA practice include:
- Company audits (internal and external)
- Financial reporting
- Financial statement analysis
- Client representation before the IRS
- Individual and corporate tax preparation and planning
- Advisement on regulatory compliance, risk management, and fraud prevention
- Securities and Exchange Commission (SEC) report filing
- Advisement on business strategy, profitability, and tax liability
CPAs are also typically subject to continuing professional education (CPE) credit requirements that vary by state.
They must also follow the professional and ethical rules set by their state board of accountancy. And CPAs who are Association of International Certified Professional Accountants (AICPA) members adhere to the organization’s code of professional conduct, which includes principles related to:
- Integrity
- Objectivity
- Avoiding conflicts of interest
- Due care
- Professional competence
- Serving the public interest
Common Career Paths
CPAs work across a wide range of industries and settings, from large public accounting firms and corporate finance departments to government agencies. Over time, many specialize in areas like financial forensics or business valuation.
Common career paths include:
- Compliance auditor
- Corporate accountant
- Government accountant
- Tax advisor
- Controller
- Forensic accountant
- Chief financial officer (CFO)
- CPA firm owner
Some CPAs focus primarily on individuals and small businesses, handling tax planning and financial advisory work. Others move into corporate or institutional roles.
How to Become a CPA
Becoming a CPA takes time and dedication. While every state has slightly different requirements, here’s what a typical path looks like:
- Meet your state’s education requirements. Most candidates need at least a bachelor’s degree with required accounting and business coursework. Many jurisdictions use a 150-semester-hour pathway, which typically means earning a bachelor’s degree plus about 30 additional semester hours of coursework. That said, some states recognize or are adopting alternative 120-hour pathways.
- Get qualifying work experience. CPA candidates generally need professional accounting experience before licensure (at least 1–2 years). The type, length, and verification process vary by state.
- Pass the Uniform CPA Exam. This is a 4-part exam that includes sections on Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Taxation and Regulation (TAR), and a discipline of your choosing. You need to get at least 75 out of 99 to pass each section.
- Apply for your CPA license. After passing the exam, you apply for your license. Fees vary by state.
- Adhere to continuing education and other requirements. Licensed CPAs typically need to complete CPE and follow professional conduct rules set by their state board. CPE requirements vary by state and license status.
Key Differences Between an Accountant and a CPA
The work overlaps, but the credentials don’t. Here’s how CPAs and accountants compare across the factors that matter most for education, licensing, scope of work, and earning potential.
Licensing and Regulation
Only about half (48.4%) of all accountants were licensed as of 2024. That number reflects the range of roles available to non-licensed accountants and the significant investment the CPA path requires.
CPAs have a different set of responsibilities. State licensure means meeting ongoing CPE requirements and strict ethical standards. Firms that perform audit and attest services are also subject to peer review, a formal process in which an outside CPA evaluates the firm’s work for compliance with professional standards.
Education Requirements
Accountants typically need a bachelor’s degree in a related field, like accounting or finance. Those who prepare federal tax returns also need an IRS-issued PTIN.
Many states require 150 semester hours of college coursework before licensure, though some jurisdictions have moved toward alternative pathways. Most states also require 1–2 years of supervised work experience, too, though requirements vary by jurisdiction.
Scope of Work
Both roles involve financial recordkeeping, tax work, and client advisory. The difference is scope and authorization. Accountants are well-suited for individuals and businesses with straightforward financial needs. CPAs take on work that requires licensure, such as IRS representation or SEC filings.
Salary and Earning Potential
According to the US Bureau of Labor Statistics (BLS), accountants and auditors earn a median annual salary of $81,680. The bottom 10% earned less than $52,780, while the top 10% earned more than $141,420. The AICPA notes that CPAs may earn up to 15% more than non-CPAs.
Accountant vs. CPAs: At a Glance
| Accountant | CPA | |
| Licensing required | No | Yes (state-issued) |
| Education | Bachelor’s degree in related field | 120–150 semester hours or graduate degree |
| Exam | None | 4-part CPA Exam |
| Experience | None required for licensure; employers typically expect relevant experience | 1–2 years of supervised experience (varies by state) |
| Scope of work | Financial recordkeeping, account reconciliation, tax preparation, bookkeeping, budget analysis | Same, plus audits, IRS representation, SEC filings, and attest services |
| Typical salary range | $52,780 to $141,420 (range of 10th to 90th percentile earners, per BLS) | Varies, but CPAs may earn up to 15% more than non-CPAs (AICPA) |
How Accountants, CPAs, and Bookkeepers Work Together
Bookkeepers are foundational to business. They handle daily financial upkeep, tracking, and categorizing every transaction. They reconcile accounts and keep records accurate and current. Bookkeepers essentially create the data layer that everyone else builds on.
Accountants take it a step further. They work with the data to identify trends and pull insights that the business can use to become more profitable or sustainable. Their job is to translate those numbers into costs, savings, and opportunities.
And then there’s the CPA. They use those financial reports (and analyses) to provide higher-level services like audits, tax strategy, and compliance. For businesses navigating growth or regulatory scrutiny, a CPA’s licensure and expertise go beyond what a general accountant can offer.
How to Decide Which Path Is Right for You
According to the BLS, employment of accountants and auditors is projected to grow 5% through 2034. That’s faster than the average across all occupations. For anyone considering a career in accounting, that’s promising regardless of which path you choose.
Start as an Accountant If…
Starting as a general accountant may be the right move if you’re:
- Early in your career with a bachelor’s degree and want to build experience first
- Still exploring your options
- Interested in internal finance roles like in-house accountant
- Looking to gain experience before deciding on the more advanced CPA
Pursue CPA Licensure If…
The CPA route might make more sense if you’re:
- Already working in accounting and interested in broadening your options
- Keen on working in public accounting, auditing, or tax
- Aiming for leadership roles like controller or CFO
- Interested in representing clients before the IRS
- Planning to open your own firm someday
- Looking for greater responsibilities or the earning potential that comes with licensure
Not Sure Yet?
Many CPAs start as general accountants. Pursuing a CPA license later is always an option, and the experience you pick up along the way can count toward the requirements. You could also start out in tax planning, bookkeeping, or general administrative roles.
Start Building Your Accounting Career
You don’t have to make a final call on whether to become a CPA or accountant right now. What you can do is start building foundational skills. Intuit Academy is a practical place to start. Free programs in tax preparation and bookkeeping build foundational skills and earn you a credential that hiring managers can verify.
And when you’re ready to take it further, explore Intuit tax careers in tax and bookkeeping to get an idea of what’s out there.
FAQs
Is a public accountant the same as an accountant?
The terms are often used interchangeably. Both refer to accounting professionals who handle financial recordkeeping, tax preparation, and related services without a state-issued CPA license. The distinction that matters more than the label is the credential: A CPA has met specific education and experience requirements that a general accountant hasn’t.
Can a regular accountant eventually become a CPA?
Yes, and many do. Working as an accountant first is a common path to CPA licensure, and the experience can count toward the requirements.
Does a business need to hire a CPA if they already have an accountant?
It’s not required, but having both can be helpful. That’s especially the case in larger companies with complex financials. General accountants prepare and analyze financial records, find areas of opportunity and risk, and offer valuable financial insights to businesses. Like the CPA, their goal is to keep the company running efficiently and at maximum profitability. Businesses might also hire a CPA if they need someone who can conduct audits or file reports with the SEC.
How much more does a CPA earn compared to an accountant?
According to the AICPA, CPAs earn roughly 10–15% more on average than their non-licensed counterparts. And, according to Indeed, general accountants in the US earn an average base salary of more than $68,000 per year. CPAs earn an average base salary of more than $97,000 per year.
Can you work in tax preparation without being a CPA?
Yes, but you’ll need an IRS-issued PTIN to prepare federal tax returns. If your goal is to have unlimited representation rights with the IRS, you’ll need to be an enrolled agent, CPA, or attorney.
