If you’ve thought about pursuing a career in accounting, you may have wondered about the differences between an accountant and a certified public accountant (CPA). The terms are often used interchangeably, but there are some significant differences to consider when weighing your career options. While every CPA is an accountant, not every accountant is a CPA. An accountant can enter the profession with just a bachelor’s degree in accounting. A CPA, on the other hand, needs additional education and licensing credentials from the American Institute of Certified Public Accountants (AICPA). Keep reading to explore the differences between accountants and CPAs and learn how to choose the best educational path for your career goals. 

Understanding CPAs and Accountants 

CPAs and accountants are professionals in the finance field. Both provide financial insights, guide strategic decisions, and ensure financial transparency for individuals, small businesses, corporations, and nonprofits. However, these professionals have varying levels of authority and expertise. Accountants’ primary responsibilities include bookkeeping, preparing financial statements and tax returns, budgeting, and analyzing financial data. CPAs carry out these tasks as well as additional duties, such as performing audits, providing tax advice, and handling advanced financial analysis. CPAs are bound by rigorous licensing requirements and possess extensive expertise in finance and economics. They often specialize in specific financial domains, including tax accounting, auditing, forensic accounting, or consulting. 

What Is a CPA? 

Given their in-depth understanding of accounting principles, tax laws, data analysis, and reporting standards, CPAs are uniquely qualified to provide financial guidance to businesses and individuals. For example, a CPA may help a business minimize its tax liability by making effective use of credits and deductions. A CPA credential is highly regarded, and there are some accounting services that only licensed CPAs can perform. For example, licensed CPAs have the legal authority to file reports with the SEC (Securities and Exchange Commission) and conduct audits of financial statements to ensure compliance. CPAs are also authorized to represent clients during IRS audits or disputes. 

To become a CPA, an individual must first obtain a bachelor’s degree in accounting or a related field from an accredited university. Next, they’ll need to pass the CPA exam. This rigorous assessment consists of three core sections and one discipline section of the participant’s choosing. CPAs are also required to obtain licensure from their state's Board of Accountancy and meet other state criteria. To maintain licensure, CPAs must satisfy continuing education requirements and stay up to date on industry changes.

What Is an Accountant? 

Accountants play a vital role in financial management for both individuals and organizations. Their responsibilities include preparing taxes, managing financial records, preparing financial statements, ensuring compliance with tax codes, and analyzing financial data. Accountants work in a variety of settings, including public accounting firms, consulting firms, nonprofit organizations, financial institutions, and government agencies. 

Typically, accountants need at least a bachelor's degree in accounting or a related field. Some employers prefer candidates with a master's degree and certain professional certifications. To succeed in this competitive field, accountants need a solid understanding of math and data analysis principles, strong organizational skills, an analytical mindset, and accounting software proficiency. 

Chartered Accountants: A Global Perspective 

Chartered accountants primarily focus on taxation, applied finance, financial accounting, reporting, and management accounting. These professionals are essential in the finance sector. The “chartered accountant” designation is typically granted to accountants outside of the United States. To become a chartered accountant, individuals need to complete a bachelor's degree, gain work experience, undergo specialized training, and pass an examination. 

Chartered Accountant vs. CPA: Overlap and Differences 

The key distinction between chartered accountants and CPAs is geographical. CPAs work in the United States while chartered accountants that meet location-specific criteria can work internationally. To become a chartered accountant and work in other countries, a professional must achieve "chartered status" and meet additional qualifications. Both CPAs and chartered accountants provide advanced accounting services such as auditing financial statements, filing corporate taxes, and offering financial guidance. Chartered accountants facilitate strategic financial growth and influence fiscal decisions both domestically and internationally. They serve as leaders, advisors, and decision-makers.

CPA vs. Accountant: Career Prospects 

As the demand for financial transparency and compliance rises, the need for skilled accounting professionals also grows. There are many avenues for advancement in this field. Accountants often begin their careers in entry-level positions where they gain hands-on experience in bookkeeping, financial reporting, and tax preparation. After developing foundational skills and knowledge, many transition to managerial and executive roles where they concentrate on areas like auditing, taxation, financial analysis, and management consulting. The demand for CPAs is also high. Because they’re authorized to perform specialized services, CPAs have access to extensive career openings in the accounting field. Many public accounting firms and law offices prefer to hire CPAs due to their advanced skills and qualifications.  

Career Prospects for a CPA 

Holding a CPA credential not only validates a professional’s expertise but also unlocks a diverse range of career paths, allowing those individuals to shape their professional journeys according to their interests, strengths, and aspirations. Here are some roles CPAs can pursue:

• Compliance auditor. By ensuring adherence to local, state, and federal regulations, auditors help companies optimize operations and avoid costly reporting mistakes. According to the U.S. Bureau of Labor Statistics (BLS), the average salary for this position is $75,670 per year. The employment of compliance officers is expected to grow by 5% from 2023 to 2033.
• Forensic accountant. Often serving as expert witnesses during legal cases, these accountants examine financial data, uncover discrepancies, and present findings as evidence. The BLS reports that the average salary for accountants is $79,880 per year. The number of accountants is projected to grow by 6% from 2023 to 2033.
• Treasury manager. By managing cash flow, overseeing financial activities, and advising business leaders, treasury managers help companies reduce risks and optimize financial strategies. The average salary for financial managers is $156,100 per year, and the job outlook is favorable. The BLS estimates that the employment of financial managers will grow by 17% from 2023 to 2033.
• Budget analyst. These professionals help companies optimize resource allocation by preparing budget reports, monitoring expenses, and analyzing financial goals. According to the BLS, the average salary for budget analysts is $84,940 per year. The projected growth rate from 2023 to 2033 is 4%.  
• Chief financial officer (CFO). As one of the top executives in a company, the CFO oversees all financial activities, tracks cash flow, analyzes financial health, and directs the company’s financial strategies. The BLS reports that chief financial executives earn an average salary of $206,680. The employment of top executives is expected to grow by 6% from 2023 to 2033.  
• Accounting professor. Serving as educators and researchers, accounting professors teach students in finance and accounting departments, develop curricula, and contribute to academic studies. The average salary is $84,380 per year. From 2023 to 2033, the employment of postsecondary teachers is projected to grow by 8%.
• Finance director. Leveraging a deep knowledge of economics and business strategy, finance directors develop financial plans and policies, predict trends, and oversee tax reporting. The BLS categorizes finance directors as financial managers and estimates that their average salary is $156,100 per year. The employment rate is expected to grow by 17% from 2023 to 2033.

Career Prospects for an Accountant

A career in accounting offers diverse opportunities across various sectors. Accountants contribute significantly to economies by facilitating smooth transactions, enhancing financial processes, and preventing fraud. Accountants often specialize in auditing, taxation, managerial accounting, and cost accounting. Some potential career avenues for accountants include:

• Tax accountant. These accounting professionals prepare tax returns and help companies avoid legal and regulatory oversights. They earn approximately $79,410 a year. From 2023 to 2033, the employment of accountants is expected to grow by 6%. 
• Financial manager. By analyzing, organizing, and interpreting financial data, financial managers help companies mitigate risks, reduce costs, and reach their financial goals. The average salary for financial managers is $156,100 per year. The employment of financial managers is expected to grow by 17% from 2023 to 2033.  
• Financial consultant. Acting as trusted advisors, financial consultants help their clients make informed investment decisions that support their financial goals. Individuals in this field earn an average annual salary of $99,580. The financial consulting and financial advising professions are projected to grow much faster than average from 2023 to 2033.
• Financial analyst. Focusing heavily on data analysis, financial analysts evaluate financial data and trends to find investment opportunities and help organizations make smart financial decisions. The average annual salary for financial analysts is $99,890, and the job growth rate from 2023 to 2033 is 9%.
• Personal financial advisor. These professionals provide tailored advice about budgeting, financial planning, and investment management. They earn approximately $99,580 annually. From 2023 to 2033, the employment of personal financial advisors is expected to grow by 17%.   

Earn a Bachelor of Science in Business Administration–Accounting

If you’ve got a knack for numbers and want to use your finance savvy to help others, a career as an accountant or CPA may be right for you. At WGU, you can earn a B.S. Business Administration–Accounting degree at a speed that works for you. Our courses are online and available 24/7, allowing you to get a degree while maintaining personal or professional responsibilities. Even better, our competency-based model means that you can progress through courses as soon as you demonstrate mastery of the material. WGU’s bachelor’s in accounting program contains career-aligned courses in taxation, financial accounting, auditing, organizational behavior, economics, and other essential subjects. 

Level Up Your Career with a Master of Science in Accounting

WGU’s Master of Science in Accounting degree delves deeper into topics like accounting research and critical thinking, data analytics, fraud and forensic accounting, and management communication. You can choose to specialize in one of four concentration areas, including financial reporting, management accounting, auditing, and taxation. Whether you want to become a corporate tax specialist, auditor, financial analyst, or another type of financial professional, a degree from WGU can equip you with the industry-relevant skills you need to thrive.