Accountants are trained to be precise. They have to be honest and able to communicate financial reports to high executives in a company. Someone with an accounting degree is versatile in all fields of accounting. Some accountants go straight into the “real world” after earning their accounting degree, while others choose to move on to higher education in preparation to be a Certified Public Accountant (CPA).
The Differences Between a CPA and a Normal Accountant
An Accountant and a CPA are commonly used interchangeably. However, there are several differences between the two.
Accountants usually have a minimum of a Bachelor’s degree in accounting. They are generally required to take a minimum of 150 semester hours in college-level courses to be eligible to take the standardized Certified Public Accountant (CPA) Exam issued by the American Institute of Certified Public Accountants (AICPA).
The CPA exam is used to test an accountant’s knowledge of the standard accounting procedures, financial reporting requirements, and recordkeeping regulations to make sure they have the skills required to serve the public. If an individual passes the exam, he or she will either receive a CPA certificate or be required to prove that they have the appropriate amount of experience to receive a certificate in that state. A CPA certificate allows someone with the appropriate amount of education and experience to obtain a CPA license, which is a license to practice accounting. Accountants are required to pass additional exams throughout their careers to make sure their certifications are up-to-date and is a chance to learn the new laws and regulations in regards to accounting and the way businesses operate. CPAs generally have careers as accountants, auditors, comptrollers, tax managers, or management, public, or tax accountants.
It is important to remember that each state has its own certification requirements to obtain a CPA license. And, a CPA license only allows the individual to practice accounting tasks in the state they have earned their license in. Most states require an individual to have two to 15 years of public accounting experience or four to 20 years of experience in another form. Some states allow individuals to substitute education for experience. If you are interested in your CPA, make sure you know your state’s requirements.