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Can a non CPA call themselves an accountant?

Published in Accounting Professions 5 mins read

Yes, a non-CPA can absolutely call themselves an accountant. The term "accountant" is a broad professional title, whereas "CPA" (Certified Public Accountant) is a specific license indicating a higher level of qualification and the authority to perform certain regulated services.

Understanding the Distinction: Accountant vs. CPA

While all Certified Public Accountants (CPAs) are accountants, not all accountants hold a CPA license. In fact, a significant portion of the accounting workforce operates successfully without this certification. Data indicates that approximately 50% of accountants in the United States are actively licensed CPAs, highlighting that many professionals work in the field as accountants without holding the CPA credential.

This distinction is crucial for understanding the diverse landscape of the accounting profession.

What is an Accountant?

An accountant is a professional who handles a wide range of financial responsibilities for individuals, businesses, and organizations. Their primary role involves recording, analyzing, summarizing, and interpreting financial transactions.

Typical duties of an accountant include:

  • Bookkeeping: Maintaining accurate financial records, including ledgers and journals.
  • Financial Statement Preparation: Generating reports such as balance sheets, income statements, and cash flow statements.
  • Tax Preparation: Assisting with the preparation and filing of tax returns for individuals and businesses.
  • Payroll Management: Handling employee compensation, benefits, and related tax withholdings.
  • Budgeting and Forecasting: Helping organizations plan their financial future and manage resources.
  • Internal Auditing: Ensuring compliance with internal policies and financial regulations within an organization.

To become an accountant, a bachelor's degree in accounting or a related field is typically required. However, there is no single, universal license or certification mandated to practice as an accountant in most contexts, unlike the CPA designation.

What is a CPA?

A Certified Public Accountant (CPA) is a highly credentialed accounting professional who has met rigorous state-specific requirements for education, examination, and experience. The CPA license signifies expertise in accounting principles, auditing standards, and tax laws, and grants the holder the legal authority to perform specific public accounting services.

Key aspects of being a CPA include:

  • Licensure: CPAs are licensed by their respective state boards of accountancy.
  • Education: Generally requires 150 semester hours of college coursework, which is 30 hours beyond a typical bachelor's degree.
  • Uniform CPA Examination: Passing a comprehensive, four-part exam covering Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG).
  • Experience: Meeting a state's specific work experience requirements, often under the supervision of an active CPA.
  • Continuing Professional Education (CPE): CPAs must complete ongoing education to maintain their license.

CPAs are uniquely qualified to perform attest services, such as auditing financial statements, which provide an independent opinion on the fairness and accuracy of a company's financial reporting. This function is often legally required for publicly traded companies and many private entities.

Accountant vs. CPA: A Quick Comparison

Feature Accountant CPA
Definition Professional who performs various accounting functions. Licensed professional meeting strict education, exam, & experience.
Licensure Generally not required to use the title. Required to use the title and perform attest services.
Education Typically a Bachelor's degree in accounting. 150 semester hours (often a Master's or equivalent).
Examination No standard exam for the title. Must pass the rigorous Uniform CPA Examination.
Services Bookkeeping, tax prep, financial analysis, internal accounting, payroll. All accountant services, plus audit, review, and other attest engagements.
Authority Operates within internal finance or private practice. Can sign off on audited financial statements, represent clients before the IRS.

Roles and Responsibilities of Non-CPA Accountants

Many vital roles within the financial world are filled by skilled accountants who do not hold a CPA license. These professionals are indispensable to the functioning of businesses and economies.

Examples of roles commonly held by non-CPA accountants include:

  • Bookkeepers: Managing daily financial transactions, accounts payable, and accounts receivable.
  • Staff Accountants: Performing general accounting duties, assisting with financial statement preparation, and reconciling accounts.
  • Tax Preparers: Specializing in preparing tax returns for individuals and small businesses, often during tax season. Many tax preparers are not CPAs but are highly proficient in tax law.
  • Financial Analysts: Analyzing financial data to provide insights and recommendations for business decisions.
  • Management Accountants: Working within an organization to provide financial information for internal decision-making, budgeting, and cost analysis.
  • Payroll Specialists: Focusing specifically on managing payroll, employee benefits, and related tax compliance.

These roles are fundamental to maintaining financial health and compliance for countless organizations. While a CPA license can open doors to specific opportunities, particularly in public accounting and audit, it is by no means a prerequisite for a successful and fulfilling career as an accountant.

Practical Insights for Aspiring Accountants

For those considering a career in accounting, it's important to understand that there are multiple pathways to success:

  • Diverse Career Paths: A career in accounting is not limited to becoming a CPA. Many choose to specialize in areas like forensic accounting, governmental accounting, or financial planning without pursuing the CPA license.
  • Value of Experience: Practical experience and a strong skill set in areas like financial software, data analysis, and communication are highly valued in the profession, regardless of CPA status.
  • Continued Learning: The accounting field is constantly evolving. Ongoing professional development, certifications in specific areas (e.g., Certified Management Accountant - CMA), and staying updated on financial regulations are crucial for all accountants.

In conclusion, the term "accountant" is a broad and inclusive title. Many individuals who perform accounting functions are indeed accountants, even without holding the Certified Public Accountant license.