Tax glossary

Certified Public Accountant (CPA)

Certified Public Accountant — what it means, how it works, and a real example, explained without the jargon.

What is Certified Public Accountant (CPA)?

A CPA is a state-licensed accountant who has passed the CPA exam and met education and experience requirements.

How it works

CPAs handle far more than taxes — audits, financial statements, and business advisory — but many specialize in tax. Like EAs, they have unlimited rights to represent clients before the IRS.

A quick example

A growing business might use a CPA for both its year-end tax return and ongoing advice on entity structure, payroll, and financial planning.

What people get wrong

Not every CPA is a tax expert — some focus on audit or corporate finance. When you're hiring for taxes, ask specifically about their tax and IRS-representation experience.

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Frequently asked questions

What does Certified Public Accountant mean?

A CPA is a state-licensed accountant who has passed the CPA exam and met education and experience requirements.

How does Certified Public Accountant work?

CPAs handle far more than taxes — audits, financial statements, and business advisory — but many specialize in tax. Like EAs, they have unlimited rights to represent clients before the IRS.

What's the most common mistake with certified public accountant?

Not every CPA is a tax expert — some focus on audit or corporate finance. When you're hiring for taxes, ask specifically about their tax and IRS-representation experience.