Accounting is basically the recording and reporting of business and financial transactions. Anyone who does that function can call themselves an accountant, even without a degree in accounting, although typically an accountant does have an accounting-related degree. Capella University offers a bachelor’s degree in Accounting CPA and a Certificate in Accounting, allowing you to tailor your program to your state’s CPA requirements. Accountants without a CPA certification may prepare a proper tax return, but a CPA offers distinct advantages to clients that non-CPAs cannot provide. A CPA can represent you in front of the IRS in the event of an audit, thanks to their comprehensive knowledge of tax rules and what you can and cannot legitimately deduct. While an accountant may draft your company’s tax return, only a CPA can defend it if the IRS or state tax authorities have questions or issues. Accountants are frequently called upon to give financial advice to their superiors or management teams.

Candidates need at least 150 hours of higher education to earn a CPA license in all jurisdictions. For example, a bachelor’s degree is usually worth 120 hours, and a master’s degree provides students with 30 or 36 credit hours. Therefore, many accountants pursuing a CPA license choose to get a master’s degree to meet the CPA education requirement. An accountant is a financial professional who compiles and analyzes financial information. Bookkeepers compile and post financial information while accountants take the information that bookkeepers compile and prepare financial statements, budgets and tax returns. For new businesses, a CPA can be a valuable resource in explaining financial statements and what they mean for your business — both now and in the future.

CPA vs CA: Career Path

Additionally, if you have broader accounting needs — for instance, your bank requires a reviewed financial statement to comply with loan covenants — then working with a CPA can be beneficial. EAs and CPAs are both knowledgeable, experienced professionals who are required to maintain high ethical standards. The primary difference between an EA vs CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and more.

These types of accountants specialize in cost analysis, profitability, and budgeting. Management accountants, or corporate accountants, help corporations and business owners make important business decisions. Their job is to understand a company’s financial health and how new business plans or changes will affect the bottom line. These types of accountants specialize in planning, budgeting, risk management, and business strategy. Like general accountants, CPAs are in the business of offering financial advice.

Can You Get a CPA Without an Accounting Degree?

However, outsourcing daily bookkeeping tasks can give you peace of mind and more time to run other aspects of your business. When it comes to accounting, terms like bookkeeper, accountant, and CPA are often thrown around interchangeably. But each finance professional is distinct and offers different roles and advantages. The person who does the accounting function is called as the accountant.

Add in the increased job opportunities and career growth and you’re in excellent shape. For instance, you can have cpa vs accountant a bachelor’s degree and fulfill the remaining 30 credit hours by ad hoc, non-degree courses, in most cases.