A CPA stands for Certified Public Accountant, which is a professional designation given to licensed accounting professionals. A CPA is an accounting professional who has met state licensing requirements to earn the CPA designation through educational, exam, and experience requirements. To become a CPA, you must pass a rigorous exam, known as the Uniform CPA Exam, and meet high educational standards, including completing a program of study in accounting and acquiring professional work experience in public accounting.
A CPA is different from an accountant, as anyone who does any type of accounting function can call themselves an accountant, even someone without a degree. However, a CPA has earned a professional designation through a combination of education, experience, and licensing.
CPAs are not limited to one industry or job function. In addition to keeping and interpreting financial records, CPAs are able to perform other services as a result of the knowledge gained in exam preparation and continuing professional education (CPE) requirements. Some of the services that CPAs can perform include tax preparation, financial statements, financial planning, forensic accounting, internal auditing, and income tax.
In summary, a CPA is a licensed accounting professional who has met certain education, exam, and experience requirements to earn the CPA designation. They are not limited to one industry or job function and can perform a variety of services related to accounting and finance.
