CPA vs Accountant: Differences You Need to Know

This guide will help you differentiate between a CPA and an accountant, as well as answer pressing questions about how these designations impact an accountant’s career path. For professionals who want to enter the accounting field, it’s common to wonder what the difference is between an accountant and a CPA. While it may seem that people use these terms interchangeably, there are distinctions between these professionals. In fact, the accuracy of everything from your net income to your accounting ratios depends on properly entering debits and credits.

In those cases, the candidate receives a certificate, but not a CPA license, until they’ve completed the required work experience. CPA candidates have 18 months to complete all 4 parts, and applicants must cpa vs accountant score at least 75% in each section of the CPA exam. The CPA certification exam generally is considered difficult, and less than 20% of test-takers pass all four sections the first time they take them.

State Requirements and Codes of Ethics

AICPA reports that the average starting salary for public accountants ranges from $40,000 to $57,500 and partially depends on the firm size and location. According to AICPA, accountants who have a graduate degree and hold a CPA certification can earn 10 to 15% more than the average starting salary. Accountants are professionals who manage financial records of a business or firm.

The section with writing tasks are worth 15% and task-based simulations count for 35%. CPAs earn 10 to 15 percent more money than non-CPAs and have better job security, according to the Oklahoma Society of CPAs. When in doubt, it’s typically best to use a Certified Public Accountant whenever possible. CPAs are generally more knowledgeable about the recent changes in tax code, and they have a fiduciary duty to act in your best interest. A CPA will be more expensive — but, in many cases, it’s worth the cost difference.

Get Started By Earning Your CPA Degree

Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. 3 Individual Savings Claims – We calculated each customer’s interest savings based on payments Tally made on their behalf to their credit cards with a higher APR than their Tally line of credit. We compared the total daily interest that would have accrued with and without Tally based on the difference between their credit card APR and the APR for their Tally line of credit.