Differences Between an Accountant and a CPA

When a field of work is as large and diverse as accounting, it can become difficult to tell the difference between similar positions and job titles. For example, the skills and responsibilities of accountants and certified public accountants (CPAs) sometimes overlap, causing some confusion about the difference between the two.  

If you’re having difficulty differentiating between the career paths of an accountant vs. a CPA, you’re not alone. Continue reading to learn about the important factors that set these roles apart. 

Difference Between a CPA and an Accountant

CPAs and accountants have several similarities. Both possess accounting expertise and may choose from a variety of career paths. In their daily tasks, they may even share some of the same responsibilities, such as performing audits, offering financial advice and completing tax returns. However, it’s essential to understand their differences when choosing which type of accounting you’d like to pursue. 

The main difference between an accountant and a CPA is their level of education and training. Most jobs available to private accountants only require a bachelor’s degree, but to work in public accounting, professionals must earn their CPA license. Licensing requirements can vary by state, but they typically include:  

• Additional education – many CPAs earn a master’s degree  
• Ethics exam, though this is not required in all states
• Passing score on the CPA exam
• Prior accounting experience – check the CPA requirements in your state 

To keep their license active, CPAs must also complete continuing education requirements. The amount of continuing education required varies by state. 

Due to education and licensing requirements, CPAs are typically more qualified to pursue higher level jobs than bachelor’s-level accountants. They also tend to have a deeper understanding of topics in accounting and finance, including tax law and data analysis. Depending on the specific courses in their master’s program, they may also be better suited for specialized types of accounting, such as international, forensic or sustainability accounting.  

To summarize, every CPA is an accountant, but not all accountants are CPAs. In the following sections, we’ll dive deeper into the individual responsibilities of accountants and CPAs.

What Does an Accountant Do? 

As an accountant, you may work in a range of environments and practice many different types of accounting. Wherever your chosen career path takes you, your responsibilities may include¹:  

• Advising financial decisions
• Data and trend analysis
• Financial investigation
• Budget creation and management
• Financial reporting
• Tax preparation
• Transaction tracking 

What Does a CPA Do? 

As a CPA, you may be asked to perform the same tasks as an accountant, but you will also provide additional financial services. CPAs are legally allowed to act as fiduciaries for their clients, which means you may be asked to personally manage a client’s assets. CPAs must also abide by a code of ethics and professional standards as required by the American Institute of Certified Public Accountants (AICPA). 

As a CPA, you may also be responsible for¹: 

• Business consulting
• Cash flow management
• Employee management
• Financial reporting
• Public company auditing  
• Risk management
• SEC report filing
• Tax filing 

Learn more about careers one might pursue as a CPA vs. an accountant in the section below. 

OHIO’s MAcc Prepares Grads for the CPA Exam

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Careers in Accountancy

Accountant Careers 

Budget Analyst: $84,940/year²

Budget analysts work with organizations to plan their finances. Their responsibilities often include developing the business’s budget, reviewing spending proposals, monitoring organizational spending and estimating future financial needs. Budget analysts also produce reports to communicate information about the financial health of an organization to its leaders. 

Tax Examiner: $58,530/year³ 

 Tax examiners review taxes for individuals and organizations to ensure they follow all regulations and tax laws. Professionals in this role may perform audits and investigate tax or income discrepancies. Depending on their role, tax examiners may also be responsible for following up with taxpayers and entities that owe additional taxes to the state or federal government.  

CPA Careers 

Financial Risk Analyst: $106,090/year⁴ 

Financial risk analysts work closely with investment clients to maximize returns and minimize losses. Professionals in this role need strong skills in critical thinking, data analysis and risk assessment to build solid and diverse portfolios that perform well for their clients. They study economic trends, meet with clients to discuss their options and make recommendations based on their expertise. 

Chief Financial Officer (CFO): $148,800/year⁵ 

The chief financial officer is the top finance role in any organization and is often a CPA. This person oversees the finance and accounting operations of an entire business. They are responsible for making major business decisions, managing other financial leaders, and keeping a close eye on the organization’s finances. 

Elevate Your Accounting Career 

No matter where you plan to go on your accounting career path, a quality master’s degree program can help you get there. At Ohio University, you can build master’s level expertise in both accounting and analytics in the AACSB-accredited online MAcc program. Featuring a practice-based curriculum taught by supportive, expert professors, this program includes multiple pathways to graduation for students with or without an accounting bachelor’s degree.  

Enroll in OHIO’s MAcc to gain the real-world skills you need to excel in any accounting position. Graduate in 20 months prepared to pass the CPA exam and move forward in your career. Request more information today to learn why this program made Fortune’s 2024 list of Top 10 Best Online Master’s in Accounting Programs.⁷  

Sources 

1. Sarkar, Jitanjan. “CPA vs. Accountant: Definitions and Primary Differences.” April 1, 2024. Indeed. Retrieved August 1, 2024, from https://www.indeed.com/career-advice/career-development/cpa-vs-accountant.
2. Bureau of Labor Statistics, U.S. Department of Labor. Occupational Outlook Handbook. “Budget Analysts.” April 17, 2024. Retrieved August 2, 2024, from https://www.bls.gov/ooh/business-and-financial/budget-analysts.htm.  
3. Bureau of Labor Statistics, U.S. Department of Labor. Occupational Outlook Handbook. “Tax Examiners and Collectors, and Revenue Agents.” April 17, 2024. Retrieved August 2, 2024, from https://www.bls.gov/ooh/business-and-financial/tax-examiners-and-collectors-and-revenue-agents.htm.
4. Bureau of Labor Statistics, U.S. Department of Labor. Occupational Outlook Handbook. “Financial Analysts.” April 17, 2024. Retrieved August 2, 2024, from https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm.
5. Payscale. “Average Chief Financial Officer Salary.” Retrieved July 30, 2024, from https://www.payscale.com/research/US/Job=Chief_Financial_Officer_(CFO)/Salary.  
6. Bureau of Labor Statistics, U.S. Department of Labor. Occupational Outlook Handbook. “Financial Managers.” April 17, 2024. Retrieved August 2, 2024, from https://www.bls.gov/ooh/management/financial-managers.htm.
7. Fortune Education. "Best Online Master's in Accounting Programs for 2024." Retrieved August 1, 2024, from  https://fortune.com/education/business/best-online-masters-accounting. 

Infographic Transcript

This image is split into two halves to demonstrate the differences between an accountant and a certified public accountant (CPA). In the center, there is a small white circle with “vs” in black font.

CPAs:

• Business consulting
• Cash flow management
• Employee management
• Financial reporting
• Public company auditing

Accountants:

• Advising financial decisions
• Annual auditing
• Budget creation and management
• Financial reporting
• Tax preparation
• Transaction tracking

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