Difference Between CPA Certificate & CPA License
US CPA stands for US Certified Public Accountant, a globally-recognized accounting certification that is in demand on a global level. Many individuals pursue it to give their careers the boost they need. It brings us to the question, what is a CPA, and how does it elevate your career? Well! Let’s understand.
What is a CPA?
A CPA designation is provided to licensed accounting professionals by the Board of Accountancy of each US state. A CPA must meet the experience, educational, and exam requirements which include passing a rigorous examination called the “Uniform CPA exam.”
He/She must hold a Bachelor’s degree in accounting, administration, or finance and should have completed at least 150 hours of education. The person should also possess at least two years of work experience in public accounting.
A candidate with a CPA license can audit reports, sign tax returns, and use the term CPA on any legal or official report. CPA CPE (Continued Professional Education) hours are necessary to keep your license active. Generally, you would require at least 120 credit hours of CPE every three years.
What does a CPA do?
CPAs can assist people and companies in minimizing taxes and maximizing profits by choosing the best course of action as per their professional expertise. CPAs hold reputable positions in public and corporate accounting. They also hold executive positions like CFO (Chief Financial Officer), Financial Analyst, Senior Accountant, etc. They produce reports which accurately reflect the business dealings of the company. They also perform general accounting tasks like tax reporting and filing for companies and individuals.
Career Paths for CPAs
There is a wide range of career options available for CPAs in public & private accounting as well as in the government sector. They can also move to executive positions. Though CPAs specialize in income tax preparation, they are also proficient in other areas such as forensic accounting, book-keeping, auditing, managerial accounting, and some areas of Information Technology. Public accountants who work for top multinational firms like Ernest and Young, KPMG, or Deloitte, must hold a CPA designation.
Is Earning a CPA Designation Worth It?
The examination process is not easy, and earning this credential requires a big time commitment. Accountants with CPA credentials earn 25% more than non-CPA accountants. Also, the career growth rate of CPA accountants is better than their non-CPA counterparts. They are given positions of more responsibility and are promoted to senior-level positions in a shorter period.
CPA Certificate vs. CPA License
A CPA certificate implies that you have undergone and successfully completed the required coursework necessary to practice as a Public Accountant. It also shows that you possess the necessary skills to provide professional services to individuals or organizations. You must meet the minimum criteria and pass the CPA exam to earn the US CPA course certificate.
However, to get a CPA license, you must possess the experience requirements and complete the practical training. To learn more about the difference between a CPA certificate and a CPA license, click on the link, Difference between CPA certificate and CPA license.
