What Is  a CPA

Ever wondered what exactly a CPA is and why it matters so much in the world of accounting and finance? If you understand what a CPA is, it can help you decide if this credential is right for you as a student who is exploring career paths or someone aiming for a professional upgrade.

Introduction

Many people assume accounting is all spreadsheets and calculators, but CPAs prove it’s so much more. Becoming a Certified Public Accountant (CPA) is one of the most respected roles in finance, where your expertise influences companies, communities, and even government decisions. 

In this blog, we will break down the CPA meaning, what CPAs do, the required skills, the benefits of earning the license, and how you can become one.

What is a CPA?

A CPA, or Certified Public Accountant, is a licensed professional, recognized for expertise in accounting, auditing, taxation, and business consulting. Unlike a general accountant, a CPA has to pass the rigorous Uniform CPA Examination and meet education and experience requirements.

In 2024, as per the NASBA data, around 75,000 candidates sat for the CPA exam, but only about 50% passed each section on their first attempt. This shows just how challenging the process is and why earning the credential is such a respected achievement.

In other words, all CPAs are accountants, but not all accountants are CPAs. A CPA license shows employers and clients that you meet high professional standards.

The following statistics illustrate the CPA’s professional significance and growing demand:

1. Employment for accountants and auditors, including CPAs, is projected to grow 5% from 2022 to 2034, as per the U.S. Bureau of Labor Statistics (BLS).
2. As of 2025, there are over 6,530,408 actively licensed CPAs in the United States.

In short, a CPA is more than a job title. It’s a professional badge of trust and credibility.

What does a CPA do?

A CPA may perform a variety of roles within the accounting field, depending largely on their area of specialization. Some of the common responsibilities that CPA professionals hold include:

1. Auditing and assurance: review the company’s financials to ensure accuracy and compliance.
2. Tax preparation and planning: help individuals and businesses to minimize their tax liabilities.
3. Financial consulting: advise companies and individuals on mergers, acquisitions, or long-term financial strategies.
4. Regulatory compliance: ensure that companies follow state and federal accounting laws.
5. Forensic accounting: investigate fraud or financial misconduct.

Essentially, when someone asks “what does a CPA do?”, the short answer is: they provide trusted financial expertise that supports both individuals and organizations.

What skills should I have as a CPA?

To succeed as a CPA, you should have technical knowledge as one of the important requirements. Along with that, some soft skills are also needed. Here are key abilities that you, as a future CPA, will need to develop:

1. Analytical thinking: to spot trends and financial issues quickly.
2. Attention to detail: as accuracy matters a lot in accounting.
3. Communication skills: to be able to explain complex financial concepts in simple terms.
4. Problem-solving: to help clients make smart business or personal financial decisions.
5. Ethics and integrity: CPAs must follow strict ethical codes.
6. Tech proficiency: Should have familiarity with accounting software and data tools.

These are the skills that set a CPA apart from a general accountant.

Benefits of a CPA license

To earn a CPA license, you will need significant effort, but the rewards are significant. Let us take a look at the CPA degree benefits:

• 🔶 Higher earning potential: On average, CPAs earn 10–15% more than non-licensed accountants.
• 🔶 Job security: With complex tax laws and growth in global businesses, CPAs will remain in demand. This can be verified by the BLS data of 5% growth rate of accountants with a CPA.
• 🔶 Career flexibility: CPAs work in public accounting firms, corporations, and government. They can even start their own practice.
• 🔶 Global recognition: While licensing rules differ for every country, CPA credentials are respected worldwide.
• 🔶 Leadership opportunities: Many CPAs go on to hold positions like CFO, controller, or partner at firms.

In short, the CPA degree is more than an academic qualification. It is a professional advantage that will help you stand out in the finance field.

How to become a CPA

To become a CPA, you need to complete multiple steps. Here’s the roadmap on how to become a CPA:

🟧 Earn a degree: Typically, a bachelor’s degree in accounting, finance, or any equivalent degree. Most states require 150 semester credit hours of coursework.

🟧 Meet state requirements: Each state has its own rules for CPA eligibility. You should check with your State Board of Accountancy.

For example, the CPA eligibility in California requires:

• Candidates must complete 150 semester credit hours, including 24 semester units in accounting subjects (like auditing, financial reporting, and taxation) and 24 units in business-related courses.
• They also need 1 year of supervised accounting experience under a licensed CPA
  

🟧 Pass the CPA Exam: The Uniform CPA Exam includes four sections: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation.

🟧 Gain work experience: Usually 1-2 years under a licensed CPA’s supervision.

🟧 Apply for your license: Submit proof of your exam scores, education, and experience.

🟧 Continue professional education (CPE): CPAs must complete annual training to keep their license active.

While it may seem challenging, many students pursue the CPA path because of the long-term career benefits.

FAQ’s