A Certified Public Accountant (CPA) is a licensed accounting professional who has met stringent educational, examination, and experience requirements set by state boards of accountancy.
The CPA credential is the most widely recognized and respected designation in the accounting profession, distinguishing those who have passed a rigorous four-part examination and demonstrated the competence required for advanced public accounting work.
CPAs serve in roles spanning audit and assurance, tax compliance and planning, financial consulting, corporate finance leadership, and government accounting.
The U.S. Bureau of Labor Statistics reports a median annual wage for accountants and auditors — a category that includes CPAs — of approximately $79,880, with significant upside for those who advance to senior positions, partnership roles, or executive finance functions.
The full accountant salary breakdown covers how credential status affects compensation across career stages.
Understanding what a CPA does, how the role differs from a general accountant or bookkeeper, and what the path to certification involves can help those considering the profession make informed decisions.
This guide covers the CPA role, requirements, salary expectations, and career outlook for 2026.
What Does a CPA Do?
CPAs perform a range of high-level accounting services that require licensure.
The most important distinction between a CPA and an unlicensed accountant is legal authority: only CPAs are authorized to sign audit reports, attest to the accuracy of financial statements, and represent clients before the IRS in most tax controversy proceedings.[1]
In public accounting firms, CPAs may conduct financial statement audits for corporations, government agencies, and nonprofits; prepare complex corporate and individual tax returns; advise on tax strategy and planning; and provide management consulting or forensic accounting services.
In private industry, CPAs serve as controllers, CFOs, internal auditors, and financial managers.
In government, they work for the IRS, GAO, SEC, and state and local agencies.
The breadth of available settings makes CPA one of the most versatile professional credentials in finance. For a full walkthrough of the credential process, see our guide on how to become a CPA.
CPA vs. General Accountant vs. Bookkeeper
The distinction matters for both employers and consumers of accounting services.
To understand what a bookkeeper does — recording daily transactions without requiring any license or formal degree — helps define the bottom of the credential hierarchy.
General accountants typically have a bachelor's degree and handle complex financial analysis and reporting but may not hold a CPA. CPAs hold a state license that requires 150 credit hours of education, passing the four-part CPA exam, and qualifying work experience — and they carry legal authorization to sign audit opinions and represent clients before tax authorities.
Only CPAs may legally hold out as CPAs to the public in any state.
Job Duties and Responsibilities
A CPA's specific duties depend heavily on their employment setting and specialization. Common responsibilities across settings include:
- Audit and Assurance: Examining and evaluating financial records to express an opinion on the accuracy of financial statements, in compliance with GAAP and auditing standards. For more on this specialty, see our guide on what an auditor does.
- Tax Compliance: Preparing and filing complex federal, state, and international tax returns for individuals, corporations, partnerships, estates, and trusts.
- Tax Planning: Advising clients on strategies to minimize tax liability within applicable law, including entity structure planning, timing strategies, and deduction optimization.
- Financial Reporting: Preparing financial statements and ensuring compliance with GAAP, IFRS, or applicable regulatory frameworks.
- Advisory Services: Consulting on mergers and acquisitions, business valuations, risk management, and financial systems implementation.[2]
CPAs in Corporate Finance
Many CPAs work in corporate finance rather than public accounting firms.
Corporate CPAs often serve as controllers (overseeing all accounting operations for a company), internal auditors (evaluating internal controls and compliance), or as part of financial planning and analysis (FP&A) teams.
Senior corporate CPAs frequently advance to Vice President of Finance or CFO roles.
The CPA credential combined with operational business experience creates a powerful profile for executive finance positions.
Education and CPA Requirements
Becoming a CPA requires meeting three core requirements commonly called the 'Three E's': Education, Examination, and Experience.[2]
Education: All 50 states require 150 credit hours of college education to sit for the CPA exam or obtain licensure (requirements vary by state for the exam itself).
A bachelor's degree in accounting (typically 120 hours) plus a master's degree or additional coursework fulfills this requirement.
Accounting and business coursework must meet minimum requirements set by state boards.
Examination: The Uniform CPA Examination consists of four sections: Auditing and Attestation (AUD), Business Analysis and Reporting (BAR), Financial Accounting and Reporting (FAR), and Tax Compliance and Planning (TCP).
All four sections must be passed within an 18-month window once the first section is passed.
Each section is four hours long and includes multiple-choice questions, task-based simulations, and written communication tasks.
Experience: Most states require one to two years of qualifying work experience under the supervision of a licensed CPA. The specific definition of qualifying experience varies by state.
Continuing Professional Education
After obtaining a CPA license, practitioners must complete Continuing Professional Education (CPE) to maintain licensure — typically 40 hours per year or 80 hours per two-year period, depending on the state, with specific requirements for ethics training.
CPE ensures CPAs remain current on tax law changes, accounting standard updates, and evolving professional standards.
Many professional associations, state CPA societies, and online providers offer CPE courses.
CPAs advising clients on tax matters should stay current on provisions like the student loan interest deduction and mortgage interest deduction, which are common client questions with rules that change frequently.
Salary and Career Outlook
The BLS Occupational Outlook Handbook reports the median annual wage for accountants and auditors at approximately $79,880 as of the most recent published data, with the top 10% earning more than $137,280.[1] CPAs typically earn a meaningful premium over non-licensed accountants at comparable career stages.
Entry-level Big Four accountants with a CPA may start at $65,000–$80,000, while senior managers at major firms earn $120,000–$180,000.
Partners and principals at large public accounting firms often earn $300,000–$700,000+, though these figures represent career-long advancement.
Job growth for accountants and auditors is projected at approximately 4% over the 2022–2032 decade, generating about 136,400 openings per year.
Demand for CPAs is expected to remain strong, driven by regulatory complexity, globalization, and increasing demand for financial advisory services that require professional licensure.
CPAs at senior income levels may want to evaluate their personal financial picture against average net worth by age benchmarks and ensure they're maximizing retirement savings through vehicles like a Roth IRA.
Salary Variation by Setting
CPAs in public accounting (CPA firms) and certain financial services roles tend to earn more than those in government or education.
Big Four firm professionals typically earn the highest starting salaries, while regional and local CPA firms offer competitive pay with broader responsibility earlier in careers.
Government CPAs — working for the IRS, SEC, GAO, or state agencies — often earn below private sector equivalents but benefit from defined benefit pensions, job stability, and strong benefits packages.
Location also plays a significant role: CPAs working where the cost of living in New York or cost of living in California is high are typically compensated accordingly.
Steps to Become a CPA
The path to CPA licensure follows these stages:
:
- Step 1: Complete a bachelor's degree in accounting (or a related field with substantial accounting coursework) from an accredited institution.
- Step 2: Meet the 150 credit-hour requirement through a master's program (MAcc, MBA, or MST), additional undergraduate coursework, or a combined five-year bachelor's/master's program.
- Step 3: Apply to your state board of accountancy to confirm your eligibility to sit for the CPA exam. Requirements vary by state.
- Step 4: Pass all four sections of the CPA exam. Most candidates use a structured review course such as Becker, Surgent, Roger, or Wiley, dedicating 300–400 hours of study per section.
- Step 5: Accumulate the required work experience (typically one to two years, state-dependent) under a licensed CPA supervisor.
- Step 6: Apply for CPA licensure with your state board and begin fulfilling CPE requirements annually.
Is a CPA Career Right for You?
The CPA designation is well-suited to individuals with strong analytical skills, attention to detail, and an interest in law, regulation, and financial complexity.
The investment in earning the credential — typically representing several years of study and hundreds of hours of exam preparation — delivers long-term return through enhanced earnings, career flexibility, and professional credibility.
Public accounting (CPA firms) can involve demanding hours, particularly during tax season (January–April) and audit busy seasons, with 60–80+ hour weeks in some roles.
Those seeking better work-life balance may find corporate accounting positions more predictable.
The credential's flexibility — it opens doors in auditing, taxation, consulting, corporate finance, and executive management — makes it one of the most versatile professional designations in business.
For those on the fence, reviewing what a financial analyst does provides a useful comparison of an alternative finance credential path with different trade-offs in terms of exam requirements, compensation, and work environment.
Frequently Asked Questions
What is the difference between a CPA and an accountant?
An accountant is anyone who performs accounting work, whether or not they hold any license or formal degree.
A CPA is a state-licensed accountant who has completed 150 credit hours of education, passed the four-part Uniform CPA Examination, and accumulated qualifying work experience.
Only CPAs may legally sign audit opinions, attest to financial statements, and represent clients before the IRS in most circumstances.
The CPA designation carries legal weight, professional accountability, and typically a significant salary premium over non-licensed accountants. For a full picture of the general accountant role, see our guide on what an accountant does.
How hard is the CPA exam?
The CPA exam is widely considered one of the most challenging professional credentialing examinations in the United States.
Individual section pass rates typically range from 45–55%, and overall completion rates for all four sections are estimated at 50–60% of candidates who begin the process.
Each section is four hours long and includes complex multiple-choice questions, task-based simulations, and for some sections, written communication tasks.
Most successful candidates report studying 300–400 hours per section and using structured commercial review courses.
How long does it take to become a CPA?
The typical timeline from starting a bachelor's degree to obtaining a CPA license is six to eight years: four years for a bachelor's degree, one to two additional years to reach the 150 credit-hour requirement (through a master's program or additional courses), one to two years to pass all four exam sections (which may overlap with work experience), and one to two years of qualifying work experience.
Many candidates complete steps 3–5 simultaneously, which can compress the overall timeline.
What can a CPA do that a regular accountant cannot?
CPAs have exclusive legal authority in several areas. Only CPAs may sign and issue audit reports for public companies and certain regulated entities. Only CPAs (and enrolled agents) may represent clients before the IRS in all stages of audits, appeals, and collections.
CPAs may legally hold out to the public as CPAs in any state, which is regulated as a title protection. These exclusive rights make the CPA license essential for those working in public accounting audit practices or providing certain advisory services to regulated entities.
Is a CPA worth it financially?
Based on BLS wage data and industry surveys, CPAs typically earn 10–20% more than non-licensed accountants with comparable experience, and the premium is most significant at mid-career and senior levels.
The long-term financial return on the investment in a CPA license — including exam fees, review course costs, and additional education — is generally positive for those who advance in the profession.
CPAs who move into controller, CFO, or executive finance roles can earn substantially above the BLS median.
The credential's flexibility across sectors also provides career resilience.
Sources & References
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook — Accountants and Auditors, 2024–25 Edition. — https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm
- American Institute of Certified Public Accountants (AICPA), Become a CPA — Requirements and Process, 2025. — https://www.aicpa.org/career/becomeacpa
- IRS, Enrolled Agents vs. CPAs — Tax Professional Credential Comparison. — https://www.irs.gov/tax-professionals/enrolled-agents
Last updated: April 27, 2026