If you’re managing personal finances or running a business, you may have heard about CPAs and wondered what exactly they do. A CPA (Certified Public Accountant) is a trusted financial professional with specialized training, certification, and expertise in accounting, tax, and financial management.
This article explains what a CPA is, what services they provide, and why you might need one.
What Is a CPA?
A Certified Public Accountant (CPA) is an accountant who has met strict educational, examination, and experience requirements set by state boards of accountancy. CPAs are licensed professionals authorized to provide accounting, auditing, tax, and consulting services to the public.
Becoming a CPA requires:
Completing at least 150 college credit hours (often a bachelor’s degree plus additional coursework)
Passing the Uniform CPA Exam
Gaining relevant work experience under a licensed CPA
Committing to ongoing continuing professional education (CPE)
What Services Does a CPA Provide?
CPAs offer a wide range of financial services, including:
Tax Services
Preparing and filing personal and business tax returns
Tax planning to minimize liabilities
Representing clients in IRS audits and disputes
Auditing and Assurance
Examining financial statements to ensure accuracy and compliance
Providing assurance reports for businesses and organizations
Accounting and Bookkeeping
Managing financial records and statements
Preparing budgets and forecasts
Offering advice on accounting systems and controls
Consulting and Advisory
Business planning and strategy
Risk management
Financial analysis and decision support
Estate and retirement planning
Why Hire a CPA?
Expertise and Trust: CPAs have rigorous training and are bound by a strict code of ethics.
Compliance: They keep up-to-date with complex tax laws and accounting standards.
Problem Solving: CPAs can help resolve tax issues, audits, and financial challenges.
Comprehensive Services: From taxes to business consulting, they offer end-to-end financial guidance.
Peace of Mind: Working with a CPA reduces errors, penalties, and financial risks.
CPA vs. Accountant: What’s the Difference?
| Feature | Accountant | CPA (Certified Public Accountant) |
|---|---|---|
| Licensing | Not required | State licensed after passing CPA exam |
| Education | Varies | Minimum 150 credit hours |
| Examination | None or limited | Must pass the CPA exam |
| Services | Basic bookkeeping & tax prep | Auditing, tax, consulting, representation |
| IRS Representation | Limited | Full rights to represent clients |
How to Find a CPA
If you want to work with a CPA, start by:
Checking with your state’s Board of Accountancy website
Using professional directories such as the AICPA’s “Find a CPA” tool
Reading online reviews and asking for referrals
Scheduling consultations to discuss your needs and their services
Final Thoughts
A CPA is a highly qualified financial expert who can provide invaluable assistance for personal finance, business accounting, taxes, and more. Hiring a CPA can help you save money, avoid costly mistakes, and make smarter financial decisions.
