What is a CPA? What does a Certified Public Accountant do?

You’ve probably heard someone say, You should talk to a CPA. And maybe you nodded, but inside you were thinking, what is a CPA, and why would I need one anyway. A CPA is a qualified accountant with a license to handle more advanced financial stuff like taxes, audits, business filings, and giving solid money advice. They’re not just number people; they’re trained professionals who know how to keep things clean and legal. But knowing what a CPA is doesn’t stop there. In this blog, I’ll walk you through exactly what they do, how they’re different from regular accountants, and when it actually makes sense to hire one.

What Is a CPA?

CPA stands for Certified Public Accountant. It’s not just a title it’s a license. CPA or Certified Public Accountant, is a licensed accounting professional in the United States and in many other English-speaking countries. Their education, examination, and experience requirements demonstrate a high level of expertise in accounting and auditing. As a  CPA in the US, you can offer a variety of financial services to the public, including auditing, tax preparation, and financial consulting.

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What Does a CPA Do?

Here’s where things get interesting. People often ask what is a CPA’s job beyond just taxes. The truth is, their work goes far beyond April 15.

1. Tax Preparation and Planning

Yes, they do taxes but it’s not just about filling in boxes on a form. A CPA can help you legally reduce your tax bill, take advantage of deductions and credits you didn’t even know existed, and plan for future tax seasons so you’re not hit with surprises.

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2. Business Advisory Services

Thinking of starting a business? Or maybe you’re already running one and feel like your finances are all over the place. A CPA can guide you on everything from choosing the right business structure (LLC, S-Corp, etc.) to managing payroll and forecasting cash flow.

3. Auditing and Assurance

If you're applying for a loan, attracting investors, or just want to prove your financials are solid, CPAs can provide auditing services. This basically means they examine your finances with a fine-tooth comb and verify that everything checks out. It’s like a financial stamp of approval.

4. Financial Planning

Retirement, college funds, investments these are big decisions, and CPAs can help you make smart moves. They take the guesswork out of financial planning and tailor a plan that fits your life.

5. Representation Before the IRS

If the IRS comes knocking (or worse, sends a scary letter), only certain professionals can represent you legally and yes, CPAs are one of them. That alone is reason enough to have one in your corner.

How Do You Become a CPA?

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Education Requirements for Becoming a CPA

Before anything else, future CPAs need to hit the books. Most states require at least 150 credit hours of college education, which is more than what you’d get with a standard bachelor’s degree. While many CPAs major in accounting, others come from backgrounds like finance or business. What matters is that they complete the required coursework in accounting and related subjects.

The CPA Exam

One of the biggest hurdles in becoming a CPA is passing the Uniform CPA Exam. This is a four-part exam that tests candidates on core areas like auditing, financial reporting, regulations, and business concepts. It’s known for being tough many don’t pass on the first try and it takes real commitment to get through all the sections within the required timeframe. But it’s a crucial part of proving what a CPA is and why their advice carries weight.

Real-World Experience Under a Licensed CPA

Classroom learning and exams aren’t enough. To fully earn the CPA license, candidates also need hands-on work experience typically one or two years under the supervision of a licensed CPA. This gives them the chance to apply what they’ve learned in real situations, and it’s part of what separates a CPA from someone who only studied accounting on paper.

CPA Licensing and Ongoing Education

After passing the exam and completing their work experience, candidates can apply for their official CPA license. But the learning doesn’t stop there. CPAs are required to take continuing education courses every year to keep up with changing tax laws, regulations, and accounting standards. This is one reason why, when you're asking yourself what is a CPA and why do they matter, the answer includes their ongoing dedication to staying current and sharp.

CPA vs. Accountant 

An accountant might have a degree and experience managing books, filing taxes, or preparing financial statements. But a CPA goes through extra steps they have to pass a challenging multi-part exam, gain work experience under another CPA, and continue learning every year to keep their license active..

CPAs are also legally allowed to represent clients in front of the IRS, while regular accountants usually cannot. So, while an accountant might be great for routine financial tasks, a CPA is the better choice for situations that involve serious decisions, complex tax filings, or official reports.

History of the CPA Designation

To better understand what is a CPA, it helps to know how the designation came to be. The title Certified Public Accountant has been around for well over a century. It started in 1896, when New York became the first state to pass a law giving qualified accountants the CPA license. At the time, the goal was simple, create a standard that proved someone truly knew how to handle public accounting work.

Over the years, as businesses and tax laws became more difficult, the CPA designation grew in importance. In 1916, the American Institute of Accountants was formed, which later became the American Institute of Certified Public Accountants (AICPA) the national group that still oversees many standards today.

Events like the Great Depression and corporate scandals such as Enron in the early 2000s pushed governments to tighten financial regulations, further increasing the need for trusted CPAs. Laws like the Sarbanes-Oxley Act in 2002 made CPA oversight even more critical, especially for companies going public or reporting to shareholders. Today, CPAs are seen as one of the most trusted financial professionals in the U.S., and the designation is recognized around the world.

Difference Between an MBA and a CPA

If you’re trying to decide between pursuing an MBA or becoming a CPA, it helps to know how each path is different. While both can lead to strong careers in finance or business, understanding what is a CPA compared to an MBA can clarify which option fits your goals.

Responsibilities of a CPA

A CPA handles much more than just tax filing. Their responsibilities include preparing financial statements, guiding individuals and businesses through tax planning, managing audits, ensuring compliance with financial laws, and offering advice on budgeting, payroll, and long-term financial strategies. They're also licensed to represent clients before the IRS, which makes them a trusted resource when complex financial or legal matters come up.

Why CPAs Are Trusted Professionals

CPAs are trusted because they’re trained, licensed, and held to a higher standard than regular accountants. They’re required to follow a strict code of ethics and are expected to put clients’ best interests first.

When a CPA signs a financial report, that signature carries weight. Lenders, investors, government agencies, and other professionals often require CPA-reviewed documents because they know the work has been carefully done by someone who knows the rules. This level of trust is one of the biggest reasons people choose CPAs over general accountants.

How SK Financial CPA Can Help

Now that you know what a CPA is, the next step is finding one who actually makes things simple. Many of our clients come to us unsure if they’re filing taxes right, confused about starting a business, or just tired of not knowing what their numbers mean. We don’t just handle the paperwork we help you understand what’s going on and what to do next. From taxes and bookkeeping to business setups and IRS issues, we guide you every step of the way. With over 23 years of experience and 15,000+ clients served, we know how to make things clear. 

Conclusion

A CPA isn’t just someone who files your taxes once a year they’re someone who can step in when money, rules, or decisions start to feel like a lot to figure out on your own. Somewhere along the way, you might’ve asked yourself what is a CPA really for, and hopefully now, the answer feels a lot clearer. They’re there to help you make the right moves with your finances whether you’re running a business, dealing with paperwork, or just trying to get things in order. And sometimes, having that kind of support is exactly what makes everything else a bit easier to handle.

FAQs

1. Can a CPA help me if I’ve never filed taxes before?

Yes, a CPA can guide first-time filers through the entire process, help avoid mistakes, and make sure all the right forms are submitted. They can also explain what documents you’ll need and what deductions may apply to you.

2. Is a CPA only for people with high income?

Not at all. A CPA is helpful no matter your income level. They work with individuals, small businesses, freelancers, and even students anyone who wants their finances handled correctly and efficiently.

3. Can I hire a CPA just once, or do I need them year-round?

You can absolutely hire a CPA for one-time help, like filing taxes or handling a specific issue. But many people choose to work with them regularly for ongoing support, especially if they own a business or have complex finances.

4. What’s the difference between a CPA and a tax preparer at a chain store?

A CPA is licensed and trained to handle more complex financial issues and provide legal tax advice. Most chain-store tax preparers are only certified for basic filings and don’t offer year-round support or personalized guidance.

5. Do CPAs only work with businesses, or can individuals hire them too?

Individuals can absolutely work with CPAs. Whether you’re a student, a retiree, or someone with rental income or investments, a CPA can help make sense of your financial situation and ensure everything is filed correctly.

6. Can a CPA help with budgeting and saving money, not just taxes?

Yes, many CPAs offer financial planning services. They can help you set realistic goals, track your spending, create a budget, and plan for future milestones like buying a home, saving for college, or retirement.

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