Simple English definitions for legal terms
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A certified public accountant (CPA) is a professional accountant who has met all the requirements to earn a CPA license from the State’s Board of Accountancy (SBA). CPAs can do more than regular accountants, like auditing, tax consulting services, and financial planning. To become a CPA, you need a bachelor’s degree in business administration, finance, or accounting, 150 hours of education in college-level accounting courses, at least two years of public accounting experience, and to pass the Uniform CPA Exam. To keep the CPA license, CPAs must complete 40 hours of continuing professional education each year.
A Certified Public Accountant (CPA) is a professional accountant who has met all the requirements to obtain a CPA license from the State's Board of Accountancy (SBA).
The main difference between an accountant and a CPA is that CPAs are authorized to perform additional services, such as auditing, tax consulting, and financial planning, among others.
To become a CPA, one must meet the following general requirements:
Furthermore, to maintain the CPA license, CPAs must complete 40 hours of continuing professional education each year. The number of hours required to maintain the CPA license varies from State to State, depending on SBA requirements.
For example, a CPA may be hired by a company to perform an audit of their financial statements to ensure they are accurate and comply with accounting standards.
Another example is a CPA who provides tax consulting services to individuals or businesses to help them minimize their tax liability and comply with tax laws.
These examples illustrate how CPAs are authorized to perform additional services beyond traditional accounting tasks, making them valuable assets to businesses and individuals seeking financial expertise.