What is a Certified Public Accountant (CPA)?

A Certified Public Accountant (CPA) is a licensed financial professional qualified to perform accounting, auditing, tax, and consulting services. CPAs must pass a rigorous examination and meet state-specific education and experience requirements to maintain certification.

Key Functions

  • Preparing and auditing financial statements

  • Tax planning and filing

  • Business advisory services

  • Internal control assessments and compliance audits

Example

A CPA may prepare a company’s year-end financial reports, advise on tax-saving strategies, and conduct audits to ensure regulatory compliance.

Why It Matters

  • CPAs provide credibility to financial information

  • Often required for public companies and investor-backed startups

  • Help businesses manage complex financial and tax situations