This guide has everything you need to know about being a CPA, including general CPA duties and responsibilities, CPA qualifications that most firms look for, differences between being a CPA and other similar roles (e.g. CPA vs accountant, CPA vs CMA vs CFA, etc.), and most importantly, templates with samples of a CPA job description if you want to work for an accounting firm.
What is a CPA? Understanding What a Certified Public Accountant (CPA) Is
A certified public accountant (or a CPA for short) is a professional who successfully took the CPA exam and obtained a CPA certification. Expected to understand accounting principles, regulations, and financial procedures deeply, CPAs ensure the accuracy and transparency of financial reporting for businesses and organizations.
When you’re a CPA, you’re expected to uphold high ethical standards and adhere to strict codes of conduct set forth by professional accounting organizations, like the American Institute of CPAs (AICPA), the National Association of State Boards of Accountancy (NASBA), or the Financial Accounting Standards Board (FASB) in the United States.
Meanwhile, what’s known to be certified public accountants (CPAs) in the United States also have their Canadian counterparts: chartered professional accountants. Representing these accounting professionals in Canada, the Chartered Professional Accountants Canada (CPA Canada) regulates CPAs within their territory.
In both the United States and Canada, you must participate in ongoing education and training to maintain a CPA license. Becoming a CPA means dedicating your time and energy to continuing your studying accounting and staying current with industry trends, especially with the many changes in accounting, tax, and general financial regulations.
What Does a CPA Do? CPA Duties and Responsibilities
Generally, CPA duties and responsibilities involve creating and managing financial documents, records, and information. The following are among the CPA duties and responsibilities that most firms require:
- Managing company audits
- Making and setting budgets
- Reducing debts and company costs
- Keeping up with trends in the industry
- Providing advice on company spending
- Creating financial statements and tax reports
- Updating company policies according to current tax/accounting laws
Meanwhile, the CPA duties and responsibilities that are relevant mostly in the United States are the following:
- Certifying financial statements and external audits, among other important reports related to taxation and accounting
- Representing clients before the IRS and file reports to the SEC
- Helping clients navigate complex financial challenges and make better financial decisions, ultimately to reach their long-term goals
- Providing expert guidance on tax compliance, auditing, consulting, and financial planning
- Achieving the long-term financial goals of their clients precisely, while sticking to the company values that have been established
What is a CPA License?
Arguably the most prestigious license in accounting, the CPA license is a widely recognized professional credential that can cut across different industries. It distinguishes accounting professionals for their niche-specific expertise, distinctive industry skills, and upstanding ethics, among other factors that prove their credibility as accounting professionals.
As mentioned above, acquiring a CPA license sets you apart from other accountants — a CPA can certify external audits and financial statements whereas accountants without a CPA license can only audit internally and prepare financial statements while still needing a certification from a CPA.
Known for their dedication to the accounting industry, CPAs don’t simply stop upon the acquisition of their CPA license — they continue with educational programs and courses required for the maintenance of their credentials long after successfully accomplishing their licensure.
How to Pass the CPA Exam and Become a Licensed CPA
Running for a total of 16 hours, the Uniform CPA Exam is a computerized four-part test composed of three core exams, and the option of taking one out of three discipline exams according to what the CPA wants to specialize in. The AICPA-conducted and NASBA-regulated CPA exam must be finished within 30 months (which is about 2 and a half years). The minimum score to pass per section is 75.
The Uniform CPA Exam consists of the following sections:
Financial Accounting and Reporting (FAR)
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Composed of 50 multiple choice questions
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Composed of 7 task-based simulations
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Lasts for 4 hours
Business Analysis and Reporting (BAR)
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Composed of 50 multiple choice questions
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Composed of 7 task-based simulations
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Lasts for 4 hours
Taxation and Regulation (REG)
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Composed of 72 multiple choice questions
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Composed of 8 task-based simulations
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Lasts for 4 hours
Tax Compliance and Planning (TCP)
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Composed of 68 multiple choice questions
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Composed of 7 task-based simulations
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Lasts for 4 hours
Auditing and Attestation (AUD)
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Composed of 78 multiple choice questions
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Composed of 7 task-based simulations
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Lasts for 4 hours
Information Systems and Controls (ISC)
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Composed of 82 multiple choice questions
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Composed of 6 task-based simulations
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Lasts for 4 hours
Every CPA is an accountant, but not every accountant is a CPA. The main difference between a CPA and an accountant is their credentials — CPAs have more authority and responsibilities that they can carry out. Below is a table that compares the key qualifications of an accountant with those of certified public accountants (CPAs).
Certified Public Accountant (CPA)
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Earned a bachelor’s degree in accounting* and took college credits of at least 150 semester hours or 225 quarter hours
*except in States like Hawaii, Maine, Alaska, Massachusetts and Georgia where an accounting degree is not required to take the CPA exam. -
Taken and passed the CPA exam, which consists of three (3) core exams and one (1) discipline exam
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Worked as an accountant under a licensed, active CPA for at least one (1) year
Certified Public Accountant (CPA)
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Earned a bachelor’s degree in accounting*
*some roles (e.g. auditing clerk or bookkeeper roles) in certain states don’t necessarily require a bachelor’s degree in accounting -
No need to pass the CPA exam
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Can qualify for entry-level accounting roles
Meanwhile, below is a comparative table of the responsibilities of a certified public accountant (CPA) and an accountant.
Responsibilities of a Certified Public Accountant (CPA)
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Can conduct both in-house and external audits for companies
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Can represent your firm before the IRS
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Can prepare and certify financial statements
Responsibilities of an Accountant
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Can conduct in-house audits for companies
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Can prepare tax returns
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Can prepare financial statements
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Can record and categorize financial transactions
CPA vs CMA vs CFA: Same Same but Different?
Now that we can confidently differentiate between a CPA and an accountant, there could still be some confusion regarding CPAs and other accounting roles that require certifications. You might have heard of certified management accountants (CMAs) and chartered financial accountants (CFAs). While there could be some overlaps in these roles, they are still distinct and have unique functions.
A certified public accountant or CPA is an accountant that earned enough credentials to perform certain tasks that other accountants cannot. Meanwhile, a CMA is largely involved in making business decisions for firms that hire them. On the other hand, a CFA is mostly a niche-specific financial expert, specializing in the investments industry.
Below is a table that compares these three roles:
| CPA | CMA | CFA |
|---|---|---|
| Focused on general accounting (audit, tax, etc.) | Focused on helping businesses with general financial decision-making | Focused on helping with decision-making on investments |
| Regulated by the AICPA/NASBA/FASB | Regulated by the IMA | Regulated by the CFA Institute |
| Pass the Uniform CPA Exam and the Ethics exam | Pass the CMA exam, finish 30 hours of CPE (Continuing Professional Education), which includes two (2) hours of ethics | Pass the CFA Exam |
| Mostly work for public accounting and corporate accounting firms, businesses, and non-profit sectors, among others | Can work for both the public and private sectors | Mostly work for consulting firms, risk assessment and management practices |
Certified Public Accountant Job Description: Sample Template for CPA Job Description
If you’re looking for a relevant CPA job description, then look no further. As we have narrowed down the top CPA duties and responsibilities that you can incorporate into your CPA job description, you can make use of this CPA sample template for an up-to-date, industry-relevant certified public accountant job description.
Position Overview:
We are looking for a Certified Public Accountant. He/she will be responsible for the preparation and certification of financial statements, conducting internal and external audits, updating our financial accounts and records, filing reports to the SEC, and representing our firm before the IRS.
Role Qualifications:
- Graduate of Accounting or any related course
- Passed the CPA exam and obtained CPA certification
- Experience in Accounting (preferably North American Accounting)
- Similar experience as a Certified Public Accountant
- Proficiency in accounting software (Quickbooks, Karbon)
- Multi-tasking skills
- Accuracy and attention to details
- Time management and organizational skills
Job Type: Full Time
Benefits:
- 401(k) matching
- Vision insurance
- Dental insurance
- Health insurance
- Disability insurance
Schedule: Monday to Friday, 8 AM to 5PM
Salary: $150 – $200 an hour
Which Career Path is Better: Accountant or CPA?
While this depends on the current demand for accounting talent (or which path aligns the best with the skillset or career goals of the accounting professional), a CPA generally has more career prospects since the role includes more duties and responsibilities that general accountants cannot take on, like representing the client before the IRS or conducting external audits for firms.
If accounting professionals prefer to take on more general accounting roles instead of overseeing accounting operations, then sticking to accountant roles with less regulations would be a better-suited option for them – roles like those of billing analysts, accounts payable clerks, or staff accountants.
However, recent trends show us that there is a significant decline in accounting graduates in the United States, which can be attributed to multiple factors like accountant burnout and career satisfaction issues. Whether accounting firms are looking for a general accountant to handle internal audits or a CPA to take charge of facing the IRS or the SEC, they might not be able to find what they need, especially in an increasingly small domestic talent pool.
Can Your Firm Escape the CPA Talent Crunch?
The industry-wide talent crunch caused by the imbalance between the supply and demand for skilled CPAs continues yearly at alarming rates. With a growing number of retirements and a limited pool of experienced professionals entering the industry, firms are struggling to recruit and retain top talent.
To combat this issue, accounting firms must focus on strategic planning to attract top candidates. Investing in training programs and mentorship opportunities to develop junior staff into future leaders is one way to do this – up-and-coming institutions like Topfirm are trailblazing in shaping accounting firms to be their best possible version, going beyond CPA coaching and consultancy.
Accounting firm owners should also adapt to the changing times and consider alternative staffing models such as offshore work arrangements to protect their practice from the negative impact of the industry-wide talent crunch. By adapting this approach to talent management, accounting firm owners can better position their practice for success in the increasingly competitive landscape of accounting.
Access to Top Offshore CPA Talent with TOA Global
Secret’s out! Accounting firms can escape the CPA talent crunch with offshoring, and TOA Global is your key to secure a team of highly skilled offshore accounting professionals for your practice. With offshoring, you won’t need to worry about your firm maximizing its capacity, suffering from significant losses, or the local talent crunch that has already negatively impacted other practices.
When you partner with TOA Global, you gain access to the best offshore accounting professionals like CPAs, staff accountants, and more. Top-quality offshore accounting talent has never been more accessible. Book a no-charge, obligation-free consultation with us today.
