A certified public accountant (CPA) is a licensed accountant who has passed the CPA Exam and met specific educational and experience requirements.
As a CPA, you become a trusted adviser to individuals, businesses, and organizations navigating through complex and critical financial decisions.
“The CPA isn’t just a title, it’s a gold standard, and a career passport into any industry,” Elizabeth Burkhalter, Director, CPA Pipeline at the Association of International Certified Professional Accountants, said.
The profession offers purpose, stability, and endless possibilities, and as a CPA, you can make a meaningful impact on your community. “It’s a career where you can truly grow and contribute,” said Burkhalter.
Whether you’re weighing your career options, considering an accounting degree, or looking for new career opportunities in accounting and finance, read more for definitions, comparisons, explanations, and resources to help you gain a clear understanding of what a CPA is, what a CPA does, and what a CPA's career path can look like.
Start here: What is a CPA?
A CPA is an accounting or finance professional who has achieved the prestigious CPA license from their state’s board of accountancy.
Earning the CPA license is a significant achievement, signaling to the world that you have a deep understanding of accounting principles, ethics, tax laws, auditing procedures, and financial management.
“A CPA is a professional license. Not only does earning your CPA licensure demonstrate you’ve met educational, experience, ethical, and examination standards, it showcases a symbol of trust, expertise, and integrity in the business world,” Burkhalter said.
CPAs are bound by a code of ethics and professional standards rooted in upholding ethical values in the service of the public, which means the clients you serve can rely on you for honest and objective assessments and advice for sound financial decisions. As it relates to auditing financial statements, CPAs are responsible for forming an opinion on the accuracy and reliability of the information presented. This is essential for the users of financial statements, like creditors and investors, to understand the level of confidence in the presented information.
The state-based regulations and requirement to continue professional education to maintain licensure ensure “CPAs uphold our commitment to the public through integrity and transparency,” Burkhalter highlighted.
To become a CPA, you must meet specific education and experience requirements and pass the Uniform CPA Examination® (CPA Exam), consisting of three four-hour Core sections and one four-hour Discipline section of your choice.
“Everything you need to know about the CPA Exam” presents steps to take, and “How to become a CPA” is your roadmap to getting the CPA license.
All CPAs are accountants, but not all accountants are CPAs.
“Because CPAs perform rigorous steps to obtain their license and are held to higher ethical standards, their career path is more flexible and dynamic, tapping into their higher-order skills,” Burkhalter explained.
The CPA license is issued by your state’s board of accountancy. For specific requirements, you should check with your state’s board of accountancy and the state CPA society.
To learn about the requirements in your state or territory, check out the State and Territory Directory.
If you're an international student and want to learn more, you can explore the steps to becoming a CPA in the United States.
As a CPA, your work supports:
Ethical compliance: CPAs are held to high ethical standards and often serve as watchdogs against fraud and mismanagement.
Public trust: Due to their licensure and training, CPAs are legally authorized to provide audit opinions and represent clients before the IRS.
Regulatory compliance: CPAs ensure that financial records comply with legal and regulatory frameworks.
Business performance: CPAs support organizations in optimizing financial operations and making data-driven decisions.
What does a CPA do?
Your day-to-day responsibilities as a CPA can vary depending on your role and industry.
Core services CPAs provide include:
Auditing and assurance: Reviewing financial records to verify accuracy and compliance.
Tax preparation and planning: Helping individuals and businesses file tax returns and plan for future tax implications.
Financial consulting: Offering guidance on budgeting, risk management, business strategy, and more.
CPAs combine technical expertise with public duty, and as a CPA, you are legally licensed to provide services others cannot, like audits.
For individual clients, CPAs are trusted tax advisers and financial planners. For businesses, a CPA may be a strategic partner who offers insights that go far beyond the numbers.
As a CPA, you are trained to see the whole picture and to help your clients navigate with confidence. With a versatile skill set, you are a highly valuable team member who can hold key positions in different organizations, businesses, and industries.
Once you become a CPA, your career opportunities expand across various fields and functions.
Where do CPAs work?
Public accounting firms
Working for a public accounting firm means conducting audits, preparing taxes, and offering consulting services to clients. Starting with an internship is a great opportunity, and you may find that once you land a full-time job, you'll find chances to move around in different areas of the firm to find the right fit. Over your career, you could advance to roles such as senior manager and even partner.
Corporate finance and accounting departments
Working in the finance function of a corporation means you would join a company’s finance team to complete responsibilities such as budget management, procurement of vendor services, and producing financial reports that meet compliance requirements.
Government agencies
Working for state or federal agencies, like the IRS or the U.S. Government Accountability Office, means you would review individuals' or companies' tax submissions to ensure compliance or investigate federal spending and performance. Local and state municipalities also hire CPAs to conduct fraud investigations and financial oversight, among other functions.
Not-for-profit organizations
Working for or offering services to not-for-profits, such as a religious or community center, daycare or preschool, or a sustainable farming education center, is a rewarding way to offer your expertise, such as knowledge of tax exemptions for NFP organizations, in a grassroots or community-oriented way.
Startups and small businesses
As with not-for-profits, working for or offering services to mom-and-pop businesses can be an opportunity to get away from a corporate environment in favor of a more community-oriented atmosphere. No suits required. The dress code may be casual, but the work can be varied and exciting — offering services to small businesses and startups means your expertise will be needed in a number of ways, including tax preparation.
You can learn more about the importance of career goals as an accountant and the steps you can take to achieve your career dream.
As a CPA, you’ll have opportunities to specialize your expertise.
Accounting, like other professions such as teaching, requires a person to continue professional education.
There are a variety of ways to meet CPE requirements, including attending conferences with topics ranging from personal financial planning to accounting for cannabis dispensaries.
If you decide you’d like to add more letters after your surname, you could study and earn a credential.
The Certified in Financial Forensics (CFF®) credential: You’ll examine fraudulent activity or serve as an expert witness. You can also provide litigation and investigative support services.
The Personal Financial Specialist (PFS™) credential: You’ll have tax expertise and comprehensive knowledge of financial planning so you can cover all aspects of personal financial planning for your clients (estate, retirement, investments, and insurance).
The Accredited in Business Valuation (ABV®) credential: You’ll be an expert in the valuation of businesses and intangible assets for different purposes, including transactions, succession planning, mergers and acquisitions, litigation, and consulting.
The Certified Information Technology Professional (CITP®) credential: You’ll understand how IT, accounting, and finance connect, with expertise in cybersecurity risk management, data analysis and reporting, and much more.
The Certified in the Valuation of Financial Instruments (CVFI®) credential: You’ll have deep knowledge about the level of documentation needed to support valuations, and you will understand the full cycle of valuation processes.
“Once students and young professionals hear about the incredible, growing career paths in forensic accounting and business valuation, they light up. I'm really excited about the opportunities awaiting the next generation of accountants,” Burkhalter said. “Other hot areas are ESG reporting, cybersecurity, and AI governance. These fields need professionals who can blend trust, communication, and financial smarts, in which CPAs are uniquely suited to lead.”
Gaining expertise in climate and sustainability/ESG (environmental, social, and governance) frameworks and reporting will enable you to support businesses in keeping up with regulatory requirements and creating sustainability strategies, while applying your knowledge of risk assessment.
If earning a credential isn’t your goal, you could achieve certificates and then showcase your accomplishments on your social media platforms. When CPAs work independently, as sole practitioners, having certificates or a credential enhances their credibility when someone Googles “need accounting help with [insert technical topic].”
Technical topics you could study and earn a certificate in include data analytics, not-for-profit, and personal financial planning, among others.
Accountant salary: How much does a CPA make?
Salaries for accountants and CPAs vary based on experience, location, and specialization.
The value of the CPA license starts early in your career. CPAs typically earn more than non-licensed accountants due to additional qualifications and responsibilities. Earning a CPA license can potentially increase your earning potential by hundreds of thousands of dollars over the course of your career.
Entry-level CPA salary: $60,000–$75,000+/year
Mid-career CPA salary: $85,000–$110,000+/year
Senior-level/partner/CFO: $120,000+, with high earners making over $200,000
More details on finding a fulfilling and rewarding job in the profession are available in the “Accounting careers” guide.
Having a CPA license gets you in the door and “sets you apart from your peers as a distinguished contributor … As you gain more experience, it positions you for leadership and management, perhaps even board positions. Your ability to navigate complex or changing financial situations with trust and steady communication can shape your career in ways you never thought possible,” Burkhalter said.
Becoming a CPA is a big and rewarding step to take.
The path to CPA licensure includes education, passing the CPA Exam, and fulfilling work experience and state licensing requirements.
As a CPA, you can make an impact.
With many different career paths and opportunities spanning multiple industries, you can play a crucial role in guiding companies through the complexities of financial management.
Tools and resources are available to support you in making an informed decision about your future.
This Way to CPA — A hub for students planning their accounting careers
Webinars for aspiring CPAs — Virtual events that offer Q&As, and “A day in the life of a CPA” webinars
Everything you need to know about the CPA Exam — From eligibility to scoring details and exam blueprints
AICPA career development — News and resources about the profession
State boards of accountancy — Licensing information by state
NASBA CPA Exam portal — Official site to apply and check requirements
Next Stop: CPA podcast — Expert insights, Q&As with CPAs, and much more
FAQs
What’s the difference between a CPA and an accountant?
All CPAs are accountants, but not all accountants are CPAs.
A CPA has met rigorous state licensing requirements and passed the CPA Exam. The CPA license allows CPAs to perform audits, represent clients before the IRS, and sign off on financial statements.
What career opportunities are available for CPAs?
CPAs can work in various settings, including public accounting, corporate finance, government, education, and advisory roles. The license opens doors to leadership roles such as controller, CFO, and partner at accounting firms.
How much do CPAs make?
CPA salaries are higher than those of non-licensed accountants. Entry-level CPAs typically start around $60,000–$75,000 per year, with the potential for six-figure incomes as they gain experience and assume leadership roles.