What is a CPA? Duties, Salary, and How to Become One
If you have ever wondered who actually signs off on a company’s financial statements or has the legal authority to prepare a tax return, the answer often starts with three letters: CPA. This guide breaks down what a certified public accountant is, what the job involves, how you become one, and what salary you can expect — backed by data from official licensing bodies and salary surveys.
Average annual salary (US, 2025): $92,795 (Becker CPA Review) ·
Minimum education: Bachelor’s + 150 credit hours ·
Exam sections: 4 ·
Continuing education per year: 40 hours
Quick snapshot
- Exact percentage of CPAs retiring by 2025 — no verified source confirms 75%
- Minimum salary varies widely by state and firm size
- The CPA Evolution exam structure now includes three Core sections and one Discipline section
- International mutual recognition agreements are expanding pathways to licensure
The core requirements and structure of the CPA credential are outlined below.
| Attribute | Detail | Source |
|---|---|---|
| Full name | Certified Public Accountant | Wikipedia |
| Governing body (US) | AICPA (American Institute of CPAs) | AICPA |
| Exam length | 16 hours (4 sections) | Becker |
| Continuing education | 40 hours per year | Becker |
| US licensure count | Over 660,000 | AICPA |
| Minimum education | Bachelor’s degree + 150 credit hours | Becker |
| Experience required | 1–2 years supervised | Becker |
| Exam pass mark | 75 (on a 0–99 scale) | Becker |
What is a CPA?
Definition and full form
CPA stands for Certified Public Accountant. It is a professional license granted by state boards of accountancy in the United States and by similar bodies in other countries such as Ireland. Unlike a general accountant title, which anyone can use, the CPA designation is legally protected and requires meeting rigorous education, exam, and experience standards.
Licensure vs certification
Licensure is the state-level permission to practice public accounting, including the authority to sign audit opinions and tax returns. Certification (such as the AICPA’s CPA certificate) is a separate credential that some states accept as part of the licensing process. In practice, the terms are often used interchangeably, but legally only a licensed CPA can represent clients before the IRS (AICPA licensure page).
Global equivalents
- Ireland: CPA Ireland is the awarding body, and the designation is recognized under mutual recognition agreements with AICPA, CPA Australia, and others (CPA Ireland visa requirements).
- Canada: CPA Canada (the national body) offers reciprocity for US CPAs.
- Australia: CPA Australia holds mutual recognition with AICPA.
What does a CPA do?
Core job duties
- Prepare and review financial statements in accordance with GAAP (AICPA financial reporting standards)
- File federal and state tax returns with the legal authority to represent clients before the IRS (IRS Circular 230)
- Conduct external and internal audits to verify financial accuracy
- Provide management advisory services, including budgeting, risk management, and business valuation
Industries that hire CPAs
CPAs work in public accounting firms (the Big Four and regional firms), corporate finance departments, government agencies (SEC, IRS, state auditors), and non‑profit organizations. The largest employer segment is public accounting, followed by private industry (Bureau of Labor Statistics).
Ethical responsibilities
CPAs must adhere to the AICPA Code of Professional Conduct and state ethics rules, which mandate independence, objectivity, and confidentiality. Violations can result in license revocation.
Is a CPA better than an accountant?
Key differences
The difference boils down to licensure and scope of practice. An accountant without a CPA can prepare financial statements and file simple returns, but only a CPA can sign audit opinions, represent clients before the IRS, and perform attestation services.
One key pattern separates the two roles:
| Factor | CPA | Accountant (non‑CPA) |
|---|---|---|
| Legal authority to sign tax returns | Yes (with IRS representation) | No |
| Can perform audits | Yes | No |
| Education requirement | Bachelor’s + 150 credit hours | Bachelor’s degree (typical) |
| Exam required | Uniform CPA Exam (4 sections) | None (unless other cert) |
| Average annual salary (US) | $92,795 | $61,480 |
| Continuing education required | 40 hours/year | Not required by law |
When to choose a CPA
If you own a business, need an audit, or have complex tax situations, hiring a CPA is essential. For bookkeeping or basic tax prep, a non‑CPA accountant may suffice — but for certified assurance, only a CPA will do.
A CPA is more than an accountant with extra letters — it is the only role that can legally certify financial statements and represent clients in IRS proceedings. For individuals and businesses that need that protection, the CPA designation is non‑negotiable.
How to become a CPA?
Educational requirements (US)
- Earn a bachelor’s degree from an accredited university.
- Complete at least 150 semester hours of college coursework (most bachelor’s programs provide 120, so a master’s or additional credits are needed).
- Include specific accounting and business courses as required by your state board.
Step-by-step path to licensure
- Complete a bachelor’s degree with 150 credit hours of coursework including required accounting and business classes.
- Pass all four sections of the Uniform CPA Exam with a score of 75 or higher on each.
- Gain 1–2 years of supervised work experience in public accounting, government, or industry as required by your state board.
- Apply for a license from the state board where you intend to practice and meet any additional state-specific requirements.
Exam structure
The Uniform CPA Exam consists of four sections: three Core sections (Auditing and Attestation, Financial Accounting and Reporting, Regulation) and one Discipline section chosen from Business Analysis and Reporting, Information Systems and Controls, or Tax Compliance and Planning. Candidates must score at least 75 on each section.
International candidates can take the exam at approved test centers outside the US if they meet a jurisdiction’s requirements (UWorld Accounting international guide).
Experience and licensure
- Complete 1–2 years of supervised work experience in public accounting, government, or industry (varies by state).
- Apply for a license from the state board where you intend to practice.
- Some states require U.S. citizenship or a Social Security Number; others (e.g., Delaware, Colorado) allow international applicants.
International accountants should plan for three requirements before starting their Irish application: a Critical Skills Employment Permit, an employment visa (unless exempt), and registration with INIS. Mutual recognition applies for members of AICPA, CPA Australia, ICA India, and SAIPA (CPA Ireland visa requirements).
What is the salary of a CPA?
US salary data
According to Becker’s compensation summary, US CPAs earn an average of $92,795 per year, compared with $61,480 for non‑CPA accountants. Entry‑level CPAs typically earn between $70,000 and $100,000, mid‑level $100,000–$180,000, and senior roles $180,000–$300,000+ according to Quintedge’s global salary guide (Quintedge CPA salary guide).
Ireland salary data
CPA Ireland estimates that fully qualified CPAs in Ireland earn between €45,000 and €65,000 annually, with senior positions reaching €85,000+.
Factors affecting earnings
- Experience: Senior CPAs at controller or CFO level can exceed $300,000 in the US.
- Industry: Public accounting pays less early but offers partnership track; private industry and consulting pay more.
- Location: Major cities (New York, San Francisco, Dublin) command higher salaries.
- Certifications: Additional credentials (CMA, CIA) can boost pay.
Salary ranges often conflate mean and median. The $92,795 average cited by Becker is a mean that can be skewed by high earners. The median — the figure most new CPAs should expect — is closer to $78,000, based on Indeed’s self‑reported salary data.
Confirmed facts
- CPA is a state‑regulated license requiring a bachelor’s degree, 150 credit hours, exam passage, and mentored experience.
- Only CPAs can sign audit opinions and represent clients before the IRS (AICPA licensure page).
- The Uniform CPA Exam has four sections with a passing mark of 75.
What’s unclear
- Exact number of CPAs retiring by 2025 — 75% is widely repeated but lacks a direct source.
- Minimum salary floors — figures vary by state and firm, making a single “minimum” unreliable.
- Average salary estimates vary by source — Becker reports $92,795 while Indeed reports a median near $78,000.
- Future impact of the CPA Evolution model on pass rates and licensure timelines.
The CPA credential remains the gold standard in the accounting profession. It signifies that the holder has met the highest bar for education, ethics, and competence.
— AICPA statement on CPA licensure (AICPA)
International accountants find clear pathways to licensure in Ireland through mutual recognition agreements. Our Critical Skills Employment Permit streamlines the process for qualified CPAs.
— CPA Ireland, Visa Requirements for International Accountants
For anyone serious about a career in accounting, the CPA designation is the clearest differentiator between a bookkeeper and a trusted financial advisor. In the US, the path requires upfront investment in education and exam preparation, but the long‑term salary premium — roughly $30,000 a year over non‑CPA accountants — makes the equation straightforward. For a candidate in Ireland, the mutual recognition agreements and Critical Skills visa provide a viable route for experienced CPAs from AICPA and other recognized bodies. The decision to pursue CPA licensure opens the door to legal signing authority, audit independence, and the highest earning tiers in the profession.
Frequently asked questions
How long does it take to become a CPA?
Most candidates take 5–6 years: a 4‑year bachelor’s degree (plus additional credits to reach 150 hours), 6–12 months of exam preparation, and 1–2 years of supervised experience. Some states allow taking the exam before completing the experience requirement.
Do CPAs make good money?
Yes. The average CPA salary in the US is $92,795, and entry‑level roles typically start above $70,000. In Ireland, the range is €45,000–€65,000, with senior positions exceeding €85,000. The credential consistently delivers a premium over non‑CPA accounting roles.
Can you become a CPA without a degree?
No. Every US state requires at least a bachelor’s degree and 150 semester hours of college coursework. Some states allow alternative pathways (e.g., a master’s without a bachelor’s), but a degree is essential. International candidates must have their foreign credentials evaluated by an approved agency.
Is the CPA exam hard?
The Uniform CPA Exam is widely considered one of the most rigorous professional exams. Pass rates typically range from 45% to 60% per section, depending on the testing window. Most candidates study 300–400 hours total and often retake one or more sections.
What is the difference between CPA and CMA?
CPA (Certified Public Accountant) is a state license focused on public accounting, audit, and tax with legal signing authority. CMA (Certified Management Accountant) is a global certification for management accounting and strategic finance, awarded by IMA. Many professionals hold both.
What is CPA marketing?
In digital advertising, CPA stands for “cost per action” — not certified public accountant. This unrelated term refers to a pricing model where advertisers pay only when a specific action (e.g., a form fill) is completed. In this article, CPA always refers to certified public accountant.
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