I wish I had a nickel for every time someone asked me what the difference is between CPAs and non-certified accountants. Essentially, non-certified accountants can simply hang up their shingle and open their doors for business. There are no educational requirements. If they want to prepare taxes, most states require a certain number of qualified hours of study plus continuing education hours each year.
By contrast, CPAs have usually majored in accounting in college; sat for CPA exams covering theory, practice, auditing, and law; worked for an established accounting firm for two years; and, acquired five hundred hours of auditing time to earn their certification. In addition, they are required to complete a certain number of hours of continuing education to maintain their license.
Whoa! Why is it that one individual has to go through rigorous testing and on-the-job training to become certified to practice accounting and another can practice accounting without any formal training? It has to do with the concept of free enterprise. Remember the old adage, Caveat Emptor? It means, Let the buyer beware. In other words, it is the buyers responsibility to choose a...