Glossary term
Certified Public Accountant (CPA)
A certified public accountant is a licensed accounting professional who has met state education, exam, experience, and ethics requirements.
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What Is a Certified Public Accountant?
A certified public accountant, or CPA, is a licensed accounting professional who has met state education, examination, experience, and ethics requirements. In the United States, CPA licenses are issued by state boards of accountancy, not by a single national licensing body.
CPAs may work in tax, audit, financial reporting, business advisory, forensic accounting, government, nonprofit finance, or personal financial planning. The credential signals licensure, but the services a specific CPA offers can vary widely.
Key Takeaways
- A CPA is a licensed accountant regulated by a state board of accountancy.
- CPA candidates generally must pass the Uniform CPA Examination and meet education and experience rules.
- CPAs may prepare tax returns, audit financial statements, advise businesses, or work in finance roles.
- A CPA license is different from a bookkeeping service or general accounting title.
- Clients should check license status, services, fees, and specialization before hiring.
How the CPA License Works
The CPA credential is built around licensing requirements. Candidates typically complete required education, pass the CPA Exam, gain qualifying experience, and follow ethical and continuing-education rules. Requirements vary by jurisdiction, so the exact path depends on the state or territory.
Licensure matters because certain services, such as public accounting and audit work, may require a CPA. For tax or advisory work, the credential can indicate accounting depth, but the client still needs to confirm whether the CPA has experience with the specific issue.
CPA Services and Limits
Service area | How a CPA may help | What to verify |
|---|---|---|
Tax | Return preparation, planning, notices, and compliance | Experience with the taxpayer's situation |
Audit and assurance | Financial statement audits, reviews, and compilations | Independence and licensing requirements |
Business advisory | Accounting systems, controls, cash flow, and reporting | Industry specialization and fee structure |
Personal planning | Tax-aware financial decisions and records | Whether investment or legal advice is included |
What Clients Should Check
Before hiring a CPA, clients should confirm active license status with the state board, ask about relevant experience, understand fees, and clarify exactly what work is included. A CPA who is excellent for business tax may not be the right fit for estate tax, audit work, or complex investment reporting.
The credential is useful, but the engagement letter and scope of services determine what the client is actually buying.
The Bottom Line
A certified public accountant is a state-licensed accounting professional. The CPA credential can be valuable for tax, audit, and financial reporting work, but clients should still match the CPA's specialization, scope, and fee structure to the problem they need solved.