CPA vs Accountant: What's the Difference?
By the PWM Tax Group team ·
A CPA is an accountant who has passed the Uniform CPA Examination, met state education and experience requirements, and holds an active license from a state board of accountancy. Every CPA is an accountant, but not every accountant is a CPA. "Accountant" is a broad, unregulated job title that can describe anyone who records, analyzes, or reports on financial information, from a bookkeeper to a tax preparer to a CFO. A CPA holds a specific state credential that allows them to sign audited financial statements and represent clients before the IRS, along with other regulated work. When you are choosing who handles your taxes, the letters after a name matter less than whether that person does proactive, year-round tax work, understands your full financial picture, and reviews your return carefully before filing. What you actually want is the right fit for the work in front of you, not simply the most impressive-sounding title.
What does "accountant" actually mean?
"Accountant" is a general term for someone who works with financial records, and it carries no single licensing requirement. The word can describe a bookkeeper reconciling monthly transactions, a staff accountant closing the books for a company, a tax preparer completing returns during filing season, or a controller overseeing an entire finance department. Because the title is not legally protected in most contexts, the training and credentials behind it vary widely. Some accountants hold bachelor's or master's degrees in accounting, some hold specialized designations, and some learned the work on the job. When someone calls themselves an accountant, it is fair to ask what specific work they do, what credentials they hold, and whether they focus on your kind of situation.
What does the CPA credential require?
A CPA, or Certified Public Accountant, is licensed by a state board of accountancy after meeting strict requirements. Those requirements generally include completing 150 semester hours of college education, passing all four sections of the Uniform CPA Examination, and gaining supervised professional experience, followed by ongoing continuing education to keep the license active. A CPA can perform work that unlicensed accountants cannot, most notably issuing audited and reviewed financial statements and expressing formal opinions on them. CPAs are also authorized to represent taxpayers before the IRS. The license is the reason the title is protected: you cannot legally call yourself a CPA without holding an active license in good standing.
When do you actually need a CPA versus another kind of accountant?
You need a CPA when the work legally requires one, and for most tax situations that is a narrower list than people expect. A CPA is required for audited or reviewed financial statements, which lenders, investors, or regulators sometimes demand from a business. For everyday needs like bookkeeping, payroll, tax preparation, and tax planning, the credential matters less than the person's focus and experience with situations like yours. What you generally want to confirm is that whoever prepares and signs your federal return holds a valid Preparer Tax Identification Number, or PTIN, which the IRS requires of all paid preparers. Beyond that baseline, the better question is whether the professional plans ahead with you throughout the year or only appears at filing time.
What other tax credentials should you know about?
Several credentials beyond the CPA license signal specialized tax knowledge, and understanding them helps you compare professionals fairly. An Enrolled Agent, or EA, is licensed by the IRS specifically for tax matters and can represent taxpayers before the agency. A CFP®, or Certified Financial Planner, is trained to connect tax decisions with the broader financial plan, including retirement, investments, and major life events. A CTS®, or Certified Tax Specialist, focuses on tax strategy. At PWM Tax Group our team holds CTS®, CFP®, and MBA credentials, including Brian Drolet (CTS®, CFP®, President and Principal), Andrew Gold (CTS®, VP Tax Strategist), Holden Ziels (CFP®, MBA, Senior Tax Preparer), and Landon McIntyre (CTS®, Tax Preparer). We mention these so you can see how credentials map to the work rather than to a single title.
How should you choose who does your taxes?
Choose based on the work you need and how the professional approaches it, not on the title alone. Start by naming your situation: a straightforward individual return, an audit requiring a licensed CPA, a growing business weighing entity choices, or a family coordinating investments, retirement, and charitable giving over many years. Then ask how the professional works. A once-a-year preparer who sees your documents only in spring cannot plan around decisions you make in June. A proactive practice looks forward, runs multi-year projections, models scenarios before you act, and connects each year's return to your longer-term picture. At PWM Tax Group we take that year-round approach and always connect preparation to the broader strategy, and every engagement begins with a consultation so the work can be tailored to your facts rather than sold off a shelf.
Is this tax advice for your situation?
This page is general information, not tax advice for your situation. Tax outcomes depend on your own facts, please speak to us before acting on anything here.
Questions people ask.
Is a CPA always better than a regular accountant for taxes?
A CPA is not automatically better for taxes than another qualified accountant; it depends on the work you need. A CPA license is required for certain tasks like issuing audited financial statements, but for tax preparation and planning the professional's focus, experience with situations like yours, and whether they plan proactively often matter more than the title. The right choice is the person best suited to your specific facts.
Can a non-CPA accountant prepare and file my tax return?
Yes, a non-CPA accountant can prepare and file your tax return. The IRS requires every paid tax preparer to hold a valid Preparer Tax Identification Number, or PTIN, but does not require a CPA license to prepare returns. Enrolled Agents, Certified Tax Specialists, and other preparers can complete and e-file federal and state returns.
What is the difference between a CPA and an Enrolled Agent?
A CPA is licensed by a state board of accountancy and can perform a broad range of accounting work, including audits and financial statement opinions, while an Enrolled Agent is licensed directly by the IRS specifically for tax matters. Both can represent taxpayers before the IRS. The main difference is scope: CPAs cover wider accounting functions, while Enrolled Agents concentrate on tax.
Do I need a CPA to do tax planning?
You do not need a CPA specifically to do tax planning. Tax planning is about strategy across the year and often across many years, and professionals with credentials such as CTS® and CFP® focus on this work. What matters most is whether the professional looks forward, coordinates your taxes with your broader financial picture, and works with you before decisions are made rather than only at filing time.
How do I verify someone's tax credentials?
Verify a CPA license through the state board of accountancy where they practice, and confirm an Enrolled Agent through the IRS. You can also search the IRS Directory of Federal Tax Return Preparers to check that a paid preparer holds a valid PTIN and see their credentials. It is always reasonable to ask a professional directly what credentials they hold and what work they focus on.
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