What Does a Certified Public Accountant Do

A Certified Public Accountant (CPA) is an internationally respected finance expert in the field of accounting, auditing, taxes, and consultation. The following article provides information on ‘What does a CPA do?’, ‘CPA roles and responsibilities’, and ‘Why is this designation one of the most respected ones in the finance industry?’.

How Can We Understand the Role of a CPA?

CPA stands for Certified Public Accountant. It is a professional accountant with an auditing, tax, or advisory licence. The CPA accountant is known as a trusted advisor, who will ensure financial openness.

In today’s complex global economy, companies rely on CPAs to interpret financial data, minimise tax liabilities, and guide strategic business decisions. Whether working in CPA firms, corporations, or as independent consultants, CPA roles and responsibilities are crucial in maintaining financial integrity.

What does a Certified Public Accountant do begins beyond bookkeeping, as it involves problem-solvers not only in analysing data and making sure that there is compliance but also plays an important role in the financial growth of businesses.

What Is the Full Form and Meaning of CPA?

The expanded form of CPA stands for Certified Public Accountant. This entails that the CPA is a professional credential given to accountants who gain proficiency after clearing the Uniform CPA Exam.

If a question is asked, “What is a CPA?”, then the easiest answer would be, “A CPA is an accountant licensed or authorised to practise public accounting and perform an audit report, as well as give professional advice on financial issues.”

The CPA programme is overseen by the American Institute of Certified Public Accountants (AICPA), which is recognised globally across various countries, including the US, Canada, Australia, and India (for individuals employing US clients).

The possession of this designation requires a profound knowledge of accounting, business law, auditing practices, and financial laws. All this makes Certified Public Accountants more distinguished than general accountants.

What Does a Certified Public Accountant Do?

The jobs of CPAs differ according to their specialities. Let’s discuss what does a CPA firm do in detail by explaining its key functions:

Financial Reporting & Auditing

Ensuring financial reporting accuracy and independent auditing represents one of the most fundamental responsibilities of a certified public accountant.

• CPAs prepare, verify, and analyse financial statements for compliance with accounting standards (GAAP or IFRS).
• They perform external and internal audits to confirm that a company’s books are free from material misstatements or fraud.
• CPAs working in audit firms issue audit opinions, ensuring transparency and credibility to investors and regulators.

In sum, what does a CPA firm do in this regard is that it offers the following type of assurance: financial information can be trusted.

Tax Planning & Compliance

The other key field of what a CPA can do is specialise in taxation. CPAs help individuals as well as businesses with tax matters.

• They identify lawful tax deductions and credits.
• Ensure filings are accurate and submitted on time.
• Offer guidance on minimising tax burdens through legitimate financial planning.

When you consider what does a Certified Public Accountant do during taxes, it can be said that they become both advisors and experts in matters of compliance.

Management & Advisory Services

In management accounting, CPAs use financial information analysed by them in making decisions.

• They create budgets, forecasts, and cost analyses.
• Advise on mergers, acquisitions, and financial restructuring.
• Provide risk assessments and profitability analysis.

What a CPA can do is illustrated by this element of their work show how versatile they are. They act as strategic business partners who help with organisational planning.

Forensic Accounting and Risk Analysis

Another expanding CPA roles and responsibilities is forensic accounting. Forensic accounting requires investigation of a matter involving suspected fraud, misconduct, or financial wrongdoing.

• The CPAs in this area examine financial statements to identify financial misrepresentation or embezzlement.
• They collaborate with lawyers and testify as expert witnesses in financial disputes.
• Their work is critical for maintaining ethical financial conduct in both the private and public sectors.

Therefore, what does a Certified Public Accountant do is to perform the role of financial detectives in a broader sense of What does a CPA do.

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What Skills and Qualifications Are Required to Become a CPA?

To become a CPA, there is a requirement of academic qualifications and experience, as well as analytical skills.

Educational Background

To qualify for the CPA designation, candidates typically need:

• A bachelor’s degree in accounting, commerce, or finance.
• At least 120–150 credit hours of relevant coursework (depending on the state board).
• Strong foundation in subjects like auditing, taxation, business law, and financial accounting.

Source of Information about Skills and Qualifications Are Required to Become a CPA – AICPA & CIMA

Students following the CPA programme tend to come from an accounting or commerce background, in addition to following a CPA review programme. Being an exceptional and detail-orientated student is an important quality if one wants to consider this career.

CPA Exam & Licensing Requirements

The CPA Exam consists of four sections:

1. Auditing and Attestation (AUD)
2. Financial Accounting and Reporting (FAR)
3. Regulation (REG)
4. Business Analysis and Reporting (BAR)

Each area tests analytical skills related to ‘What does a CPA do every day?’. The candidate has to clear all four sections in a period of 18 months.

The next step after clearing the exam is earning experience credits (typically 1–2 years of supervised experience in accounting), followed by state licensure. Renewal of this licence requires continued professional education (CPE), which ensures that certified public accountants stay current on financial laws.

What Are the Career Opportunities for CPAs?

The CPA designation provides opportunities in different sectors. Below is a list of the opportunities provided by the CPA designation.

Public Accounting Firms

This is the classic career path of most CPAs. Professionals in CPA practices perform client auditing, taxation, and assurance work.

• Companies like PwC, EY, KPMG, and Deloitte hire thousands of certified CPAs worldwide.
• These companies ensure businesses stay in compliance.

If you ever wondered what does a CPA firm do, one of its main purposes is carrying out an independent audit opinion, handling the taxes of the client, and providing advisory financial services.

Corporate Finance Roles

Many of these CPAs then move on to become finance professionals in corporations, overseeing accounting, budgets, and financial analyses.

• They ensure proper financial reporting. They comply with corporate governance practices.
• They can be identified as controllers, CFOs, or finance managers.

The career path shows how a CPA’s skills can be leveraged in an organisation by marrying strategic minds with accounting expertise.

Government and Consulting Jobs

Governments and consulting firms worldwide hire CPAs to ensure transparency in financial management.

• The CPA roles and responsibilities in government involve auditing or overseeing government agency compliance with financial policies.
• As consultants, they give business enterprises advice on mergers, acquisitions, and risk management.

Source of Information about Career Opportunities for CPAs – Indeed

The CPA roles and responsibilities listed show how flexible the CPA designation is. The work of a Certified Public Accountant can encompass a broad range of activities.

Why Should You Become a CPA? What Are the Key Benefits?

The benefits of acquiring a CPA can be tremendous. Let’s discuss why most finance enthusiasts opt for this particular path:

• Global Recognition: The CPA licence is recognised in jurisdictions such as the US, Canada, and India (primarily in its application within the US).
• Career Advancement: CPAs can be found working in senior roles related to finance or auditing.
• Higher Earning Potential: Certified Public Accountants receive enhanced remuneration packages compared to non-certified accountants.
• Credibility & Trust: Your licensure will assure clients as well as employers of your honesty and abilities.
• Diverse Career Paths: Right from auditing to consultancy, the career prospects of a CPA extend into various fields.

Essentially, having this CPA designation opens up the possibility of marrying your technical skills with strategic thinking, which is an invaluable addition in the world of finance.

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Conclusion: Is CPA the Right Career Path for You?

If you love finance, accounting, or ethics in business, becoming a CPA can help you achieve international success. Learning what does a Certified Public Accountant do can help you realise that Certified Public Accountants, or CPAs, can do more than act as accountants, as they can also be strategic advisors. 

The CPA course is demanding but rewarding. It equips you with the skills to work anywhere in the world, from public accounting firms to Fortune 500 companies. So, if you’re asking yourself, “What is a CPA, and should I become one?”, the answer depends on your ambition to lead, advise, and ensure financial excellence. For those committed to integrity and lifelong learning, the CPA path is undeniably the right choice.

FAQs on What Does a Certified Public Accountant Do

What is the main role of a Certified Public Accountant?

The CPA is responsible for overseeing both financial reporting and auditing, as well as the taxation of clients. Essentially, the role of a Certified Public Accountant entails trusted financial guidance.

How is a CPA different from a regular accountant?

Typically, bookkeeping is done by an accountant, but the CPA holds an auditing licence. It’s an important aspect of what a CPA can do, which others can’t.

What qualifications are needed to become a CPA?

Requirements include a bachelor’s degree, coursework, and completion of the four CPA exam sections. The CPA coursework and licensing step satisfy all CPA responsibilities worldwide.

In which countries is the CPA qualification recognised?

The CPA designation is highly respected in the US, Canada, and Australia, as well as various Asian countries like India.

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