Certified Public Accountants or CPAs are professional accountants. They are needed by business owners and entrepreneurs to help them determine the appropriate way of handling their finances. CPAs have gone through training to receive the CPA designation, and they are now required to take continuing education courses each year. A CPA must pass the certified public accountant examination and he has to undergo an additional exam to become a CPA.
CPAs can either work independently or for a CPA firm, which will conduct their financial statements and tax return. In most cases, CPAs find employment with accounting firms that have on-site offices or branches. Business owners hire CPAs because they need an individual who can manage their finances and keep track of their income and expenses. Since CPAs handle people and businesses finances they have to be knowledgeable in tax planning, management, and business law along with economic theory and banking principles.
Bookkeepers, on the other hand, do not have the same sort of advanced education and training as CPAs do. Certified public accountants are required to obtain at least a two-year degree from a university or accredited college in accounting or bookkeeping. Some states even require CPAs to get certified in the areas of auditing and investigation before being able to apply for state CPA license.