A CPA is much more than its definition of a Certified Public Accountant. The term “Certified” refers to the licensing to practice as a CPA and meeting the standards as promulgated by the American Institute of Certified Public Accountants (AICPA) in order to obtain state licensing.
To be initially licensed, an individual must pass a rigorous examination, which is uniform among the states, and then obtain a certain amount of experience working for a firm that performs examinations of financial statements and renders a report upon them. The term “Public Accountant” refers to the role of an accountant who handles recordkeeping and reporting matters for the public. However, the term “CPA,” in sum, means to most people much more than these parts of “Certified” and “Public Accountant.” A CPA is a very trusted advisor of both individuals and businesses.
CPAs are relied upon so much because of not only their keen analytical and decision-making skills but also their objectivity, integrity, and dedication to service. Many CPAs provide services well beyond accounting, auditing, and reporting. Some of these services include business and management consulting, information technology consulting, tax planning and preparation, personal financial planning, valuation services, elder care services, and compliance. The consumer often expects a CPA to be proficient at many specializations, even those indirectly related to accounting. The CPA’s role has been quickly expanding, and it has been proposed that the term CPA be defined more appropriately as Certified Professional Advisor. The CPA profession is currently grappling with how best to define the CPA in today’s world and whether to change the CPA definition.
One thing is clear – the CPA is a very valued and trusted advisor and a professional who has not only kept up with the quickly changing world around us but has helped shape it.