What is the difference between accountants and CPAs?

Asked by: Shayna Dooley  |  Last update: June 26, 2026
Score: 5/5 (61 votes)

All Certified Public Accountants (CPAs) are accountants, but not all accountants are CPAs. The primary difference is that CPAs are licensed professionals who have passed a rigorous exam, met state education/experience requirements, and are authorized to sign audit reports and represent clients before the IRS. CPAs follow a stricter code of ethics and act as fiduciaries, while general accountants typically handle day-to-day bookkeeping and tax prep without these specific legal authorities.

Is CPA or accounting better?

CPAs are essentially licensed accountants who offer assistance to companies and businesses in the areas of expense and investment management, as well as financial planning. Additionally, they are able to provide more advanced taxation and auditing services than unlicensed accountants.

Do CPAs make more money than accountants?

A CPA Salary is Higher (On Average)

The AICPA notes that CPAs earn 10 to 15 percent more than regular accountants, possessing the potential to boost their earning potential by $1 million during their lifetimes compared to a non-CPA in the same capacity.

What can a CPA do that an accountant cannot?

A CPA can represent taxpayers and companies in the event of an audit. While accountants can prepare tax returns, only a CPA can defend a return if the IRS or state tax authorities have questions or concerns. Conducting company audits.

Can you be called an accountant without CPA?

Not all accountants are CPAs (certified public accountants), but all CPAs are in the accounting profession. Typically, an accountant has achieved a bachelor's degree in accounting. A certified public accountant earns this designation after completing specific educational and work requirements and passing a CPA exam.

What's The Difference Between An Accountant and a CPA?

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Do CPAs charge more than accountants?

CPAs are highly qualified accountants who work on more complex, high-value tasks than regular accountants. As such, they often charge considerably more for their services. CPAs typically charge anywhere from $200 to $500 per hour depending on factors such as service type, complexity of work, and geographic location.

Do accountants need a degree?

Accountants and auditors typically need at least a bachelor's degree in accounting or a related field to enter the occupation. Completing certification in a specific field of accounting, such as becoming a licensed Certified Public Accountant (CPA), may improve job prospects.

What is a level 7 accountant?

Apprenticeship overview

BPP's Level 7 Accounting Apprenticeships help you become technically qualified by passing professional exams, whilst developing the complementary skills and behaviours to succeed in your career.

What type of accountant is most in demand?

5 accounting careers in demand

  • Auditor. ...
  • Bookkeeper. ...
  • Controller. ...
  • Financial analyst. ...
  • Forensic accountant. ...
  • Certified Public Accountant (CPA) ...
  • Certified Management Accountant (CMA) ...
  • Certified Internal Auditor (CIA)

Who earns more than CPA?

It is difficult to determine which of these careers offers a higher salary, as the salary of a CA or CPA can differ based on several factors. However, generally, CAs tend to earn more than CPAs in India.

Can a CPA perform an audit?

Certified public accountants can act as external auditors. Since they provide a true and fair view of a company, third-party assurance services are essential for reducing risk and building confidence in all reported financial information.

Do CPAs make more than accountants?

CPAs, on average, make 10-15% more than unlicensed accountants and often start at a higher salary and receive higher pay increases over time. CPAs can also leverage the wide range of job opportunities available to them to obtain higher salaries than other accounting and finance professionals.

Is it illegal to call yourself a CPA?

You cannot generally represent yourself as a CPA. Some jurisdictions, however, permit you to refer to yourself as a “CPA but not in public practice.” Others, though, do not let you use the title in any form.

Do all accountants do taxes?

For the average person, accountants and taxes often go hand-in-hand. If that sounds like you, you might be surprised to learn that there are several different types of accountants out there—and that tax-related matters are often just a fraction of their work responsibilities.

Will accounting be replaced by AI?

Will AI replace accountants? Not entirely—but it will change accounting. Firms that embrace AI and technology will attract forward-thinking clients and top talent. Accountants who pair their expertise with AI tools will stay ahead of the curve.

Are CPAs still in demand?

We're also seeing very high demand for many accounting positions through 2025, from entry-level positions up to senior-level management positions. Staff accountants are essential to the day-to-day accuracy of an organization's financial operations and are often the backbone of an accounting department.

What yearly salary is considered rich?

How Much Income Do You Need to Be in the Top 20%? The real median household income in the U.S. was around $83,730 in 2024, according to the Census Bureau data published in September 2025. In order to be in the top 20% of income, you'd need to earn double that amount: 175,700 per year.