CPA Certificate vs. CPA License – How Are They Different?

If you’re kick-starting your certified public accountant (CPA) journey, you might be thinking about which is more beneficial - the CPA certification or the CPA licensure. While the two terms sound similar, both are pretty different things.

Also, they offer you different amounts of responsibility and legal authority even though they appear identical.

In this article, we’ll take a deeper dive into the CPA certificate and CPA license and the requirements they come with and later discuss why you should focus on earning your CPA license over a conventional CPA certificate.

So, Time for a Deeper Dive

Keep in mind that all state boards of accountancy have various norms and standards to become a CPA. While many have common requisites, all of them are different in some way, form, or shape.

Having said that, many states have a two-level certification procedure. This implies that once you meet the requirements to appear for the Uniform CPA Examination and clear it, you’ll be granted a certificate. Simply put, you just have completed the first phase of becoming a CPA; however, you aren’t up to the hilt yet.

To fulfill the state's licensure requirements, candidates often have to go through a lengthy work program, additional education requisites, or an ethics test. But meanwhile, they can call themselves a CPA as they have a certificate. As such, on job applications and resumes, they can demonstrate that they have cleared the exam and are on their way to getting licensed.

Remember, CPA certification is not a license to practice public accounting. Therefore, candidates who only have a certificate are not permitted to carry it out publicly as they are yet to be licensed. Only after you tick the remaining boxes can you get your license and become a practicing CPA with all designation rights in one piece.

Some other Differences in Brief

CPA Certificate

• No ongoing education requirements.

• No work experience is required.

• Cannot be a partner or owner of a public accounting company.

• Cannot sign audit reports, tax returns, or utilize the label CPA on any legal or official report.

• Some states let you use the CPA designation after your name on unofficial documents, such as resumes, while others explicitly prohibit utilizing the acronym on the whole.

• Requires a nominal fee to reissue each year

CPA License

• Most states demand at least 40 hours of ongoing education every year.

• Most states demand a minimum of 1-2 years of associated accounting experience under a CPA.

• You can run a CPA company.

• You have all the legal rights of a CPA, including signing audit reports and tax returns.

• You can utilize the title in any official or public environment.

• Requires a considerable fee to reissue each year

The Verdict - Better Go for the LicenseTo be honest, you can’t do much with just a CPA certification. The CPA license carries a level of respect and prestige way beyond a CPA certificate. Having a CPA license demonstrates that you’re devoted to the profession and are up to take on critical tasks. It offers a great deal of career sustainability as CPAs are presently in high demand, and that trend is likely to keep on.

Miles Education is a premier training institute for finance & accounting professionals looking to earn US CMA credentials. The focus of Miles Education has always been to up-skill students and professionals to help them be future-ready and enable their career progression through the US CMA qualification.

Miles is India's largest and #1 CPA and CMA review course! It has been instrumental in building India's CPA/CMA ecosystem, holding offices in 20+ cities and partnerships with 170+ MNCs, including the Big 4s. Miles Education provides student/professional-centric services while keeping concept-based learning at its core which has helped it climb to the top ranks in the US CPA/US CMA course in India.