What Is A CPA?

CPA is the abbreviation for Certified Publicto perform certain tasks that a CPA can execute.
Accountant. Although a CPA is essentially anTo maintain the CPA license, the accountant must
accountant, not all accountants are CPAs. Certifiedtake 120 hours of continuing education course in
Public Accountants handle a variety of tasksevery three years in order to stay aware of the
related to money matters, such as income taxchanges in their profession.
preparation; advice for home-based businesses,Like lawyers, certified public accountants have
small-scale businesses, or corporations; basictheir code of conduct, and they should practice
business record keeping; auditing; and consultingthose principles. They must provide their clients
work.with good, sound, and ethical advice. CPAs can
To become a CPA, an accountant must undergoperform a separate practice as consultants. The
a series of tests governed by the AmericanCPAs have to research, provide varied advice,
Institute of Certified Public Accountants (AICPA).and save corporations or businesses money, by
This examination is known as the 'Uniform CPAdeveloping financial plans that allow businesses to
Examination' and gives the license of Certifiedproject an attractive balance sheet to the
Public Accountants (CPAs). This examination wasinvestors.
first introduced by AICPA in June 1917. TheThere are many opportunities available for CPAs
uniform administration of the examination hassuch as joining The Federal Bureau of
enhanced the national prestige of the CPAInvestigation (FBI) generally as an attorney or a
designation and promoted the interstate practiceCPA. Many other federal and state government
of accounting. Other states also require CPAs toagencies also offer positions for CPAs, as
pass exams as well. However, a number ofcontrollers, Chief Financial Officer (CFO) and Chief
accountants have never taken the CPA exam butExecutive Officer (CEO) of corporations and small
still perform a variety of accountancybusinesses.
responsibilities. However, they are not permitted