A Certified Public Accountant (CPA) is a licensed accounting professional who has met specific education requirements, passed the rigorous four-part CPA exam, and maintains ongoing professional standards. CPAs perform specialized financial services that non-licensed accountants cannot legally provide, including auditing public companies and representing clients before the IRS. Understanding what does a CPA do is essential for anyone considering this prestigious career path in accounting.
The CPA designation continues to be the most highly-sought after and versatile credential for accountants, opening doors to executive positions and specialized practice areas across virtually every industry sector.
What Makes CPAs Different from Regular Accountants?
Becoming a Certified Public Accountant gives an accountant higher standing in the eyes of business contacts, professional peers, regulators, and clients alike. This elevated status stems from the comprehensive requirements CPAs must meet and maintain throughout their careers.
Only CPAs can sign audit opinions for publicly traded companies and represent clients in complex IRS proceedings—privileges that distinguish them from other accounting professionals.
Public accounting encompasses a wide range of accounting, auditing, tax, and consulting tasks for corporations, small businesses, non-profit organizations, governments, and individuals. Any qualified public accountant can do most of these tasks; however, a CPA can do two things that an accountant without a CPA license cannot:
- Prepare audited or reviewed financial statements and file a report with the Securities and Exchange Commission (SEC). All public companies must file audited financial statements with the SEC.
- Represent clients in front of the Internal Revenue Service. (However, a non-CPA who is an attorney, enrolled agent, enrolled retirement plan agent, or enrolled actuary can also represent clients.)
Additionally, most states limit non-CPA ownership of CPA firms to 49 percent; although a few states (New York and Delaware are notable examples) require that CPA firms be 100 percent CPA-owned.
CPA Salary Expectations by State
According to the Bureau of Labor Statistics, CPA salaries vary significantly by location, specialization, and experience level. The accounting profession offers competitive compensation packages that reflect the expertise and responsibilities required for these roles.
These figures represent the latest available data for accountants and auditors, with CPAs typically earning at the higher end of these ranges due to their specialized credentials and expanded scope of practice. Location significantly impacts earning potential, with major metropolitan areas and financial centers offering the highest compensation packages.
Core CPA Responsibilities in Different Practice Areas
CPAs at accounting firms typically work in one of three primary service areas, each offering distinct career development opportunities and specialized expertise requirements:
Tax Services
These services include preparing and filing federal, state, and local tax returns and working with organizations and individuals during the year to minimize their tax obligations. Tax accounting specialists develop deep expertise in complex tax code interpretations and strategic planning methodologies. In case of an IRS audit or questions by state and local tax authorities, a CPA firm can represent their clients through all stages of the process.
Audit and Assurance Services
Assurance services are independent professional services that improve the quality or context of both financial and nonfinancial information for decision makers. Auditing is an objective evaluation of financial and economic information to ensure accuracy and compliance with criteria such as generally accepted accounting principles (GAAP). Modern audit practices increasingly incorporate data analytics and technology-driven testing procedures.
Management Services
These services provide assistance with supervising and managing an organization’s or individual’s day-to-day activities and providing strategic and long-range planning. Such services may include cash management, budgeting, and financial accounting analysis; preparing financial statements; insurance coordination and risk management; investment guidance; and estate planning.
CPAs in Corporate and Alternative Career Settings
Many businesses, especially large corporations, actively seek CPAs to fill accounting positions, particularly at higher levels and management positions. CPAs may work in areas such as financial accounting and reporting, management accounting, tax accounting, and internal auditing.
Corporate CPAs often advance to executive positions such as Chief Financial Officer (CFO), Controller, or Vice President of Finance, where their comprehensive training and professional credibility provide significant career advantages.
Government and Law Enforcement
CPAs also work for government agencies, performing financial, performance, and compliance audits of government agencies and of companies who do business with the government. Another growing role for CPAs is with law enforcement agencies, helping to investigate financial crimes or other crimes that leave a financial trail.
Entrepreneurship and Academia
CPAs may also follow career paths in non-profit organizations or academia, leveraging their expertise to educate future accounting professionals or support mission-driven organizations. Many CPAs eventually start their own practices, offering specialized services to targeted client bases.
Emerging CPA Specialty Fields
The accounting profession continues to evolve, creating new opportunities for CPAs to specialize in high-demand areas that combine traditional accounting expertise with emerging business needs:
Consulting Services
CPAs work with companies to help them identify problems, find solutions, and implement changes. For example, a company’s annual tax return might be in great shape, but it needs an expert to review quarterly financials and recommend operational improvements.
Forensic Accounting Services
CPAs may decide to train as experts in fraud detection and prevention. Those trained in forensic accounting can help an organization determine if employees are making fraudulent transactions or whether someone is embezzling money from the company. This specialization combines accounting expertise with investigative skills.
International Accounting
CPAs may work outside of their home countries to assist in various tasks. Examples of these responsibilities include accounting for import and export regulations, translating financial reports so that companies understand them better, working on updating international accounting standards to better suit the needs of different cultures, and advising about financial crimes that may not be common in their home country.
Environmental Accounting
Environmental accounting specialists help organizations calculate and manage their environmental costs, including determining whether they need an environmental audit or what regulatory agencies require types of external reports. This emerging field reflects growing corporate focus on sustainability and ESG (Environmental, Social, and Governance) reporting.
Essential Skills for CPA Success
Modern CPAs must develop a comprehensive skill set that extends far beyond traditional accounting knowledge. The profession demands both technical expertise and strong interpersonal capabilities.
You’ll need to be persistent and determined, have excellent communication skills, and use the ability to think critically and problem solve. You should also be detail oriented as well as able to meet deadlines with accuracy. Other applicable strengths include:
- Analytical research skills for complex problem-solving
- Interpersonal skills for client relationship management
- Tech savviness for modern accounting platforms and data analytics
- High ethical standards essential for professional credibility
- Marketing and client focus for business development
- Project management for handling multiple client engagements
- Broad business perspective for strategic advisory services
More important than your grades in school or how many hours you spend at a desk is whether this type of work interests you. If you don’t mind analytical work, managing complex projects, or thinking strategically about financial challenges, then becoming a CPA might be the right career choice for you.
How to Start Your CPA Journey
The path to becoming a CPA requires careful planning and dedication, but offers substantial career rewards and professional recognition. Most aspiring CPAs begin with a bachelor’s degree in accounting or a related field from an accredited institution.
Key steps in the CPA journey include:
- Education Requirements: Complete 150 credit hours of education (typically requiring additional coursework beyond a bachelor’s degree)
- CPA Exam: Pass all four sections of the Uniform CPA Examination
- Experience Requirements: Gain relevant work experience under CPA supervision (requirements vary by state)
- Licensing: Apply for licensure in your chosen state
- Continuing Education: Maintain your license through ongoing professional development
Industry Growth and Future Outlook
The Bureau of Labor Statistics projects steady growth in accounting and auditing jobs, driven by increasing financial regulations, business complexity, and the need for specialized expertise in emerging areas such as sustainability reporting and data analytics.
Technological advancement is reshaping the profession, with CPAs increasingly focused on advisory services, strategic planning, and complex analysis rather than routine data entry and basic bookkeeping. This evolution creates opportunities for professionals who can combine traditional accounting knowledge with modern business insights and technological proficiency.
Frequently Asked Questions About CPA Careers
How much do CPAs earn annually?
CPA salaries vary by location, experience, and specialization. According to BLS data, accountants and auditors earn a mean annual wage ranging from $75,720 in Arkansas to $116,580 in the District of Columbia, with CPAs typically earning at the higher end of these ranges due to their specialized credentials.
What’s the difference between a CPA and a regular accountant?
CPAs have met additional licensing requirements including specific education credentials, passed the four-part CPA exam, and must maintain continuing education. Only CPAs can perform audits of public companies and represent clients before the IRS in complex matters.
How long does it take to become a CPA?
Typically 5-6 years: 4 years for a bachelor’s degree (with 150 credit hours required in most states), plus 6-18 months to prepare for and pass the CPA exam, followed by 1-2 years of relevant work experience under CPA supervision.
What industries hire the most CPAs?
CPAs work across all industries, with the highest concentrations in public accounting firms, financial services, healthcare, manufacturing, government, and technology companies. The versatility of CPA training allows for career mobility across sectors.
Is the CPA exam difficult?
The CPA exam has a pass rate of approximately 45-55% per section, making it challenging but achievable with proper preparation. The exam tests technical knowledge, analytical skills, and professional judgment across four comprehensive sections.
Can CPAs work internationally?
Yes, CPAs can work internationally, though additional certifications or qualifications may be required depending on the country. Many multinational corporations value CPA credentials for international assignments and cross-border financial reporting.
May 2024 Bureau of Labor Statistics salary data for Accountants and Auditors reflect state and national data, not school-specific information. Conditions in your area may vary. Data accessed June 2025.
