What is a CPA?

Answer 1

CPA = Certified Public Accountant. There are different guidelines in each state for what qualifies a person to be a CPA, but basically in order to become one you have to have a degree in business/accounting, basically either a Bachelor's Degree or a Master's Degree. You also have to have the practical experience of working in the accounting field, usually for a CPA firm for a length of time. You also have to take and pass a test given by each state's CPA society. Once that has happened you apply to the state society to be accepted as a CPA, and sometimes need to give a letter indicating that you have the qualifying experience. Once you are a CPA, you can do a wide variety of accounting services, such as tax preparation (which you can do if you aren't a CPA) and represent a taxpayer for an IRS audit. You can prepare financial statements, either compilations, review, or audits.

Answer 2

Some people mistakenly assume CPA's are the same as tax preparers. Many CPA do not even do taxes. A Certified Public Accountant is someone who possesses the required education, training and credentials to prepare financial statements to be relied upon by the public at large, such as investors. CPA's perform many other functions as well, such as internal auditing and financial/investment compliance work, all related to the accounting discipline. Think of CPA's as financial lawyers and you'll have a better picture of what they do.

If you're the type or person who enjoys playing games with very complex rules you could make for an excellent CPA or tax preparer. A tax preparer is someone who primarily specializes in preparing tax returns and, perhaps, may also do internal bookkeeping (which is not quite the same thing as accounting because the end-product is for management purposes only and not for public consumption) and payroll.

While many CPA's are very good tax preparers as well, it is a mistake to assume this. You should always inquire about experience and training.

Answer 3

Steve C said it better than I can. I personally know a CPA that doesn't even prepare his own tax return. On the other hand, the vast majority of 'tax preparers' are NOT CPAs. Most took an 8 hour class from H&R Block or the something similar.

Answer 4

A certified public accountant. My mom was one, until she burned out and found a better job. Very dull stuff.

Answer 5

A very bored guy, who sits
in a room alone, all day.
A money counter, for the rich.
Someone, who has to be
accountable, for something
he can never have, for himself.
Certified Public Accountant

Answer 6

Are you referring to a "CERTIFIED PUBLIC ACOUNTANT"?
ie: a tax preparer?