Confused Between CPA Certificate & CPA License? Find Here the Difference

 CPA license or certificate? The biggest confusion that probably every CPA aspirant has in their mind. Most people, in fact, consider both the same, but that’s a huge mistake. License and certificate are two different things. Certification is the first step, obtained by simply fulfilling the prerequisites and passing the CPA Exam, for which you can sign up for the best tutor. On the other hand, licensure requires passing the exam, then continuing forward to accumulate job experience, earning CPE credits, and other things.  

 Here are the differences between the two, the state regulations for each, the advantages of obtaining a CPA license, and how a review course may help you pass the CPA Exam.

 What is CPA certification? 

Unfortunately, there is a lot of misunderstanding surrounding the word "CPA certification." Every State Board of Accountancy has some prerequisites for taking the CPA Exam, such as a minimum age requirement, letters of reference, and often a bachelor's degree with 150 credit hours, with a minimum number of those hours being in accounting-related subjects.  

 You may obtain a license by meeting these prerequisites and passing the exam in all states except seven states- Alabama, Connecticut, Hawaii, Illinois, Kansas, Nebraska, and Oklahoma. These are "two-tier states" that need experience before awarding the certificate.  

 What is the difference between a CPA license and a CPA certificate?

Let's now compare the qualifications and power of the CPA certification and the CPA license. However, as previously stated, there is no direct route to a CPA license, and you have to first obtain your CPA certificate to fulfil further criteria, which differ from state to state.  

  Prerequisites for a CPA certificate 

• No prior job experience is necessary. 
• No obligation for continuous education 

 What may a CPA certificate be used for? Actually, not much. A person with a CPA certificate:  

• Is not eligible to sign audit reports or tax filings. 
• The title "CPA" cannot be used in any official or legal report. 
• A public accounting company owner or partner is not permitted. 
• In some states, can add the title "CPA" after their name on unofficial papers like resumes. Other states outright restrict using it. 
• Have to pay a minor yearly charge for renewal.  

 Prerequisites for a CPA license 

• Most states ask for at least one to two years of relevant experience in accounting under a CPA. 
• For license maintenance, most states need at least 40 hours of annual continuing education (CPE/CE) credits. 

 What can you do with a CPA license?  

• Have all the legal rights of a CPA, including signing tax returns and audit reports.
• Are allowed to own a CPA firm.
• Can use the title in any public or official setting.
• Pay a significant fee to renew each year.
• Take CPE/CE courses to maintain licensure.

 What can a CPA License be used for?  

• Possess all CPA-related legal privileges, such as the ability to sign tax returns and audit reports. 
• You can run a CPA business. 
• You can use the title CPA in any official or public context. 
• Pay a substantial cost every year for renewal. 
• Take CPE/CE courses to keep your license.

 How Andrew Katz CPA Tutoring can help you earn a CPA license?

It takes a lot of thought to decide whether to continue to pursue licensing or stop at CPA certification, but after you've passed the CPA Exam, it gets simple to decide. Andrew Katz Tutoring, the best tutor for CPA exams, helps you pass each section with confidence, develop a strong knowledge base for future accomplishments, and prepare you for the requirements of maintaining your license.  

 Andrew Katz CPA tutoring provides personalized assistance and helps you effectively use your time to learn difficult concepts required to be successful in all accounting contexts and pass the exams so you can focus on the licensing requirements.