What does a CPA do?

Information Last Verified: September 20, 2021 by Jordan Fabel

If you’re considering a career as a CPA, you probably want to know what a CPA does. If you love working with numbers and you’re very detail-oriented, this might be the right career for you.

Accounting is vital to many businesses. As a CPA, you can work for a company or yourself. Businesses have to pay bills, handle taxes, and deal with accounts receivable. As a business owner, you might not have the time to handle the accounting. With a CPA, this task is taken off the shoulders of the business owner.

While a small business owner might not need an accountant, larger businesses will. It’s pretty easy to see if you’re making a profit if you’re simply selling a product for more than you pay for it. However, as a business grows, it will get more complicated. There will be sales tax, payroll, insurance, and other things to deal with. This is where a CPA will come in.

What does a CPA do?

What is a CPA?

A CPA is a Certified Public Accountant. They handle all the math tasks for a business. As a CPA, you will handle financial planning, bookkeeping, and preparing different financial documents. This is someone that meets the experience and educational requirements of the state they reside in. They will need to pass the Uniform CPA Exam within the state.

While all CPAs are accountants, you don’t have to become a CPA to be an accountant. A Certified Public Accountant won’t make business decisions for business owners. However, they handle your taxes and other accounting tasks. They can also offer good advice when it comes to making the right decisions for the business.

What does a CPA do?

One of the most important duties of a CPA is preparing and filing business taxes. This is the main task, but they will also provide other services to businesses, including:

There are many things a CPA can do to ensure a business runs smoothly. While tax returns are the main thing they deal with, they can provide many other services for businesses.

Responsibilities and Roles of a CPA

CPAs will fulfill many roles in larger companies. They can become trusted advisors and can work in many different positions. Some of the most common job titles CPAs take on include:

Along with these job titles, CPAs can work as any of the following:

These are very common job opportunities for Certified Public Accountants to consider after gaining the right training and education.

Education and Training to Become a CPA

Before you can become a CPA, you’ll need a bachelor’s degree. Usually, this degree should be in accounting. It’s common for CPAs to get a master’s degree in business administration or accounting.

After you get the right education, you’ll need to pass the CPA license exam. This is a huge deal, and you cannot practice as a Certified Public Accountant without passing the license test.

The qualifications in one state may be a little different compared to another. All states will require you to pass the CPA license test, however. It’s a good idea to use a CPA exam prep course to ensure you pass the exam the first time. With the right prep course, you’ll be fully prepared for the test.

The CPA exam will cover many different topics. It’s split into four sections: Auditing, Business concepts, Regulations, and Financial reporting and accounting. You will need to complete 150 semester hours of accounting education before you’ll be eligible to take the exam.

Most states use the exam from the National Association of State Boards of Accountancy or the NASBA.

Frequently Asked Questions About CPAs

How long will it take to become a CPA?

It starts with a four-year undergraduate degree, but you won’t be done after getting your bachelor’s degree. You will need to complete an additional 30 credit hours over the next year. Most states will also require two years of work experience before taking the CPA license exam.

Most of the time, it takes around 7 years to become a CPA. It can take longer if you work part-time to gain your work experience.

What’s the difference between a CPA and an accountant?

An accountant will hold a bachelor’s degree in accounting. Becoming a CPA will require you to go further, however. You will need to complete additional credit hours and the right work experience. It’s also necessary to pass the Uniform CPA Exam.

While an accountant career can be rewarding, you will gain access to more job opportunities and a higher salary if you become a Certified Public Accountant. CPAs are accountants, but accountants are not CPAs.

What type of skills does a CPA need?

CPAs need the right skills, or they probably won’t make it through the education or training necessary. If you want to enter into a career as a CPA, analytical skills, along with organizational skills, are necessary. It’s also good to have strong communication skills and be detail-oriented.

CPAs should be able to discern issues before they impact the bottom line of a company. It’s also necessary to have good people skills to work as a CPA.

Where do CPAs work?

It’s common for CPAs to work for themselves in an office. Many Certified Public Accountants are self-employed and take care of multiple clients. However, they can also work for public accounting firms. They can work for larger companies in the accounting department as well.

As a CPA, you will be working a desk job. It’s rather common to do the work on your own. However, if you work for yourself, you’ll interact with clients. Even working for someone else, you may interact with clients and with your team.

How much does a CPA make?

CPAs earn between $40K and $150K per year, depending on their experience and training.

Jordan Fabel

Jordan Fabel

Covering different 'paths' that people's lives can take. Creative, foster parent, ticket dismissal, you get the idea. Exploring the requirements, certifications, exams, and obviously, approved courses along each path. I, personally, am the high school dropout son of two teacher parents. So how did I get here? That story takes more time. Coming soon!