CPA Vs Accountant: What is the Difference

Confused about the difference between a CPA and an accountant? You’re not alone! Many students wonder if they should pursue a CPA or stick with a career as an accountant. Both are excellent career paths in business and finance, but they offer distinct opportunities, salaries, and levels of professional recognition.

Introduction

If you are exploring career options in accounting, you’ll often hear about the CPA vs accountant debate. While all CPAs are accountants, not all accountants are CPAs. Think of it like this:

• 🔶 An accountant is like a general doctor who treats common conditions.
• 🔶 A CPA is like a specialist surgeon who has advanced training, certification, and authority to handle complex cases.

Both are important in the financial world, but becoming a CPA requires extra exams, education, and experience. In return, CPAs enjoy higher pay, more respect, and more career options.

In this guide, we will break down what an accountant does, what it means to be a CPA, the differences, the salary, and the future career demand. By the end, you’ll know which path may be better for your career goals.

What Is an Accountant?

An accountant is a professional who helps individuals and businesses manage their finances, prepare accurate financial statements, and ensure compliance with tax laws. They handle bookkeeping, analyze financial data, and create reports that guide better decision-making.

Common tasks of accountants include:

1. Recording financial transactions
2. Preparing budgets
3. Creating balance sheets and income statements
4. Filing tax returns
5. Ensuring compliance with financial regulations
6. Advising small businesses on how to cut costs or improve profits.

Example: A small business owner might hire an accountant to track expenses, prepare tax forms, and create financial reports so the owner can focus on running the business.

Education and Skills

Most accountants hold at least a bachelor’s degree in accounting, finance, or business administration. Some work in public firms, while others work in corporations, government agencies, or non-profits.

According to the U.S. Bureau of Labor Statistics (BLS), accountants and auditors earned a median annual salary of $81,680 in 2024.

While accountants can have rewarding careers, they may face limitations if they don’t pursue professional licensing, such as becoming a CPA.

What Is a CPA?

A CPA (Certified Public Accountant) is an accountant who has earned a professional license by passing the Uniform CPA Examination and meeting state-specific education and experience requirements.

This designation is highly respected in the accounting industry and opens doors to advanced roles.

Unlike regular accountants, CPAs have legal authority to:

1. Conduct audits and attest to financial statements.
2. Represent clients before the IRS in legal tax matters.
3. Provide advanced tax planning and consulting.
4. Sign official reports required by regulators and investors.

Example: If a publicly traded company needs its financial statements verified before presenting them to shareholders, only a CPA can legally sign off on those documents.

To become a CPA, you must have:

1. A bachelor’s degree (usually 150 semester credit hours of coursework).
2. Pass the four-part CPA exam (Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation).
3. Meeting state work experience requirements(1-2 years under a licensed CPA’s supervision).

According to Indeed, the average CPA salary in the U.S. is around $94,933 per year, which is higher than the average accountant salary.

This is why many students consider whether pursuing a CPA license is worth the effort

Difference Between CPA and Accountant

The chartered accountant vs CPA debate highlights one key fact: all CPAs are accountants, but not all accountants are CPAs.

Here’s a breakdown of the difference between a CPA and an accountant:

In short, an accountant provides essential financial services, while a CPA has advanced authority, recognition, and earning potential.

CPA vs. Accountant: Which Role Will Be in Higher Demand in the Future?

With businesses relying more on financial compliance and global accounting standards, both roles will continue to grow. However, technology and business trends are shaping their future in different ways.

According to the BLS, jobs for accountants and auditors are projected to grow by 5% from 2024 to 2034, which is about as fast as the average.

However, CPAs are expected to remain in higher demand because:

1. Companies prefer licensed professionals for audits and tax representation.
2. CPAs are trusted for high-level consulting.
3. Automation in bookkeeping means routine accounting tasks may decline, but demand for CPA expertise will rise.

So, in the CPA vs Accountant job outlook, CPAs have the edge.

Is Becoming a CPA Better?

If you want long-term growth, better salaries, and opportunities in leadership roles, becoming a CPA is worth it. However, to enhance clarity and for quicker entry into the workforce, starting as an accountant might be the right move.
Whether becoming a CPA is “better” depends on your career goals. Let’s weigh the pros and cons.

Why a CPA may be better:

1. Greater professional respect and authority.
   
2. Higher salaries (CPA salary vs accountant clearly shows the difference).
3. Wider career opportunities (auditing, consulting, corporate leadership).

Challenges of becoming a CPA:

1. More education (150 credit hours).
2. Passing a tough exam with a pass rate of around 50% per section.
3. Time and financial investment.

When comparing CPA vs accountant, the choice comes down to your career goals. If you want to specialize, earn more, and have professional authority, becoming a CPA is worth the effort. But if you prefer entering the workforce quickly, a role as an accountant can still offer stability and growth.

Either way, the accounting field is growing, and both roles will remain essential for businesses and individuals alike.

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