Legal Definitions - certified public accountant (CPA)

A Certified Public Accountant (CPA) is a professional accountant who has met all the requirements to obtain a CPA license from the State's Board of Accountancy (SBA).

The main difference between an accountant and a CPA is that CPAs are authorized to perform additional services, such as auditing, tax consulting, and financial planning, among others.

To become a CPA, one must meet the following general requirements:

• Hold a Bachelor's degree in business administration, finance, or accounting.
• Complete 150 hours of education in college-level accounting courses.
• Have at least two years of public accounting experience. Some states require one year of work experience under the supervision of a licensed CPA.
• Pass the Uniform CPA Exam. Additionally, some States may require passing an ethics exam or ethics course.

Furthermore, to maintain the CPA license, CPAs must complete 40 hours of continuing professional education each year. The number of hours required to maintain the CPA license varies from State to State, depending on SBA requirements.

For example, a CPA may be hired by a company to perform an audit of their financial statements to ensure they are accurate and comply with accounting standards.

Another example is a CPA who provides tax consulting services to individuals or businesses to help them minimize their tax liability and comply with tax laws.

These examples illustrate how CPAs are authorized to perform additional services beyond traditional accounting tasks, making them valuable assets to businesses and individuals seeking financial expertise.