Difference Between CPA Certificate and CPA License

The CPA certificate and CPA license is an important consideration for accountants. This blog explores the differences, benefits, requirements, and career implications of each to help you make the right choice for your professional growth.

What is a CPA?

Certified Public Accountants (CPAs) can be referred to as individuals with stringent education, exam, and experience requirements in the field of accounting. The role of a CPA expert involves different aspects of this profession, which include auditing, taxes, and financial reporting, among others. 

Certified Public Accountants can be considered instrumental in helping businesses or individuals ensure accurate financial data or make the right financial decisions. Being a CPA is considered highly advantageous in establishing integrity. 

For individuals wishing to or already pursuing a career in accounting, it is highly important that they understand the difference existing between a CPA certificate vs license.

What is a CPA Certificate?

The CPA Certificate is issued to individuals who passed the CPA exam but did not meet all the qualifications to become certified CPAs. The CPA Certificate can be considered an honorary recognition of both the individuals’ expertise in accounting and the passing grade on the CPA exam. However, it does not qualify an individual to offer public accounting services.

Many graduates or professionals going for further education consider the CPA certificate as the first step in proving their skills. The benefit of acquiring this certificate is that it allows professionals to gain knowledge in various fields, including auditing, tax laws, and financial reporting, as well as ethics.

Who can get a CPA Certificate?

Generally, this certificate is available for individuals who have completed the prerequisite educational qualifications and successfully passed the CPA exam. The certificate is particularly useful for individuals looking to develop themselves in the field of corporation accounting, internal auditing, or financial analysis prior to completing the experience requirement.

Skills and knowledge gained from the certificate

• Comprehensive understanding of accounting standards (GAAP, IFRS)
• Knowledge of taxation, financial reporting, and audit procedures
• Analytical thinking and risk assessment skills
• Ethical decision-making in financial practices

Limitations of having only the certificate

Even though a CPA degree is considered useful, it also has some restrictions.

• Certificate holders cannot sign audits or issue official attestations
• Public recognition in accounting and auditing roles is limited
• Career advancement and earning potential are often lower compared to licensed CPAs
• Opportunities in public accounting firms may require the license

Zell Education’s CPA exam prep service enables examinees not only to gain the certificate but also to become licensed in an efficient manner.

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What is a CPA License?

A CPA license is the professional licence enabling an individual to offer public accounting services. Persons with a CPA licence typically complete the CPA exam, meet the educational criteria (minimum of 150 credit hours), gain work experience, and meet ethics.

A CPA licence ensures an individual is professionally competent in carrying out auditing, attestation, or taxes, which makes them eligible to practise public accounting. Individuals with a CPA licence can find jobs in accounting firms or become consultants, while others can choose to practise privately. CPA also improves one’s legitimacy in their profession.

Requirements to obtain a CPA License

• Successfully pass the CPA exam
• Complete state-specific educational requirements (typically 150 credit hours)
• Acquire relevant work experience under a licensed CPA
• Fulfill ethics and continuing professional education (CPE) requirements

Source of Information for Requirements to obtain a CPA License – AICPA & CIMA

Legal authority to practice public accounting

The CPA licence allows one the full rights of practising in public accounting. This encompasses signing an audit report, making an official attestation, representing clients in matters of taxes, and giving financial regulatory counsel. Without the licence, individuals or professionals can’t perform the aforementioned on their own.

Benefits of holding a CPA License

• Greater career opportunities in public accounting and corporate leadership
• Ability to provide audits, tax, and advisory services legally
• Higher earning potential compared to certificate holders
• Recognition as a trusted financial professional

What are the Key Differences Between CPA Certificate and License?

Knowing the differences between a CPA certificate vs license is critical in planning your career.

Eligibility and exam requirements

• Certificate: Requires passing the CPA exam
• License: The candidate requires an exam pass, educational qualifications, and experience.

Legal authority and professional recognition

• Certificate: Does not provide authority to practise publicly; mainly demonstrates knowledge
• License: It provides the governing law that enables practice or functioning as a certified accountant.

Career opportunities and earning potential

• Certificate: Suitable for corporate accounting, internal audits, or finance roles; limited growth in public accounting
• License: Opens doors to senior positions, public accounting, consultancy, CFO opportunities, and higher remuneration packages

Source of Reference for CPA Career Opportunities and Earning Potential – Career Advice/Indeed

Which One Should You Choose?

Choosing based on career goals (corporate vs public accounting)

If your intention is related to accounting in corporations or financial analyses, then it seems that the CPA designation alone could be an adequate credential. The CPA certification stands for Certified Public Accountant, by the way.

For those planning on a career in public accounting, auditing, or tax practice, this licence is invariably mandatory. This licence enables its owner to exercise the legal right of representing their clients in matters of auditing.

Long-term growth and flexibility

The CPA licence provides long-term flexibility in career choices, leadership positions, and the potential to own an accounting practice. While the certificate provides great benefit in acquiring knowledge and gaining experience, this professional licence provides complete professional recognition, enhanced job security, and better remuneration.

Many of the graduates of Zell Education will begin by earning a CPA certificate, gaining experience in corporations, and then earning a CPA licence. CFA certification is highly renowned, and knowing what is CFA is beneficial for the career.

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Conclusion

The CPA certificate vs license comparison will depend on your goals in terms of career progress. The CPA certificate is best suited for training or acquiring skills. The CPA licence will offer you the flexibility to practise your profession fully, earn more money, and gain opportunities. 

The flexibility of the CPA licence is basically the ultimate career objective of most accounting practitioners. The CPA licence is ideal if you’re looking forward to gaining more from your career.

FAQs on CPA Certificate and CPA License

What is the difference between a CPA Certificate and CPA License?

A CPA certificate shows exam completion and technical knowledge, while a CPA licence grants legal authority to practise publicly and is recognised in senior accounting roles.

Can you work in accounting with only a CPA Certificate?

The degree does indeed offer entrance into corporate accounting or internal auditing jobs, while public accounting or auditing requires a CPA licence.

How do the requirements differ for CPA Certificate vs License?

The certificate of CPA requires only that an individual pass the CPA exam, while the licence requires not only education but experience as well.

Which one offers better career growth and salary?

The CPA licence provides more lucrative opportunities and participation in public accounting practices, as well as access to leadership positions. Hence, it becomes the most preferable option among licensing opportunities.

Current Role

Co-Founder & CEO at Zell Education

Education

• ACCA – Association of Chartered Certified Accountants, Finance (2011 – 2014)
• Bachelor of Commerce (BCom), Financial Markets from H.R. College Of Commerce & Economics (2010 – 2013)

Location

Mumbai, India

Expertise

ACCA Certified