CPA Certificate vs CPA License: What’s the Difference? [2025 Guide]

Comparing the Key Differences Between a CPA Certificate and CPA License

cpa-certificate-vs-cpa-licenseBecoming a Certified Public Accountant (CPA) is a significant professional milestone for individuals pursuing careers in accounting and finance. However, many candidates are surprised to learn that there is a distinction between a CPA certificate and a CPA license. While both signify that a candidate has passed the CPA Exam, they serve different purposes and come with varying levels of authority in the accounting profession.

Understanding the difference between a CPA certificate and a CPA license is essential for candidates planning their career paths. Each designation has specific requirements, privileges, and limitations that impact professional opportunities.

This guide will break down the key differences between a CPA certificate and a CPA license, explain the requirements for obtaining each, and help you determine which one best aligns with your career goals.


What Is a CPA Certificate?

A CPA certificate is a recognition awarded to individuals who have successfully passed the Uniform CPA Examination, which is administered by the American Institute of Certified Public Accountants (AICPA).

It serves as proof that the individual has met the educational and exam requirements set by their state board of accountancy. However, holding a CPA certificate alone does not grant full rights to practice as a licensed CPA or offer accounting services to the public.

Historically, some states issued CPA certificates as a stepping stone toward licensure. This allowed candidates to showcase their achievement while they worked toward meeting additional licensing requirements, such as experience hours and ethics exams.

Although the concept of a CPA certificate has become less common in recent years, some jurisdictions still recognize it for candidates who pass the exam but do not meet full licensure criteria.

Limitations of a CPA Certificate

A CPA certificate does not grant the holder the legal right to sign audit reports, issue attestations, or formally represent clients before the Internal Revenue Service (IRS). Since licensing requirements vary by state, some jurisdictions may still issue CPA certificates, but they typically serve as an interim qualification rather than a final designation.

Individuals holding only a CPA certificate may work in private industry, corporate accounting, or finance roles, but they cannot present themselves as licensed CPAs or establish an independent public accounting practice.


What Is a CPA License?

A CPA license is the highest level of CPA certification, granting full authority to practice as a Certified Public Accountant in accordance with state regulations. Unlike a CPA certificate, a CPA license allows individuals to legally sign audit reports, prepare financial statements, offer attestation services, and represent clients before the IRS.

To obtain a CPA license, candidates must meet additional requirements beyond passing the CPA Exam. These requirements vary by state but typically include:

  1. Meeting the 150-hour education requirement (beyond a standard bachelor’s degree).
  2. Completing a specified number of work experience hours under the supervision of a licensed CPA (usually 1-2 years).
  3. Passing an ethics exam (if required by the state board of accountancy).
  4. Submitting an application for licensure to the state board of accountancy.

Once licensed, CPAs must comply with continuing professional education (CPE) requirements to maintain their credentials and stay updated with evolving accounting standards.


Key Differences Between a CPA Certificate and a CPA License

While both a CPA certificate and a CPA license indicate that an individual has passed the CPA Exam, the differences between them are significant:

Legal Authority to Practice

  • A CPA certificate does not grant the legal authority to sign audit reports, issue attestations, or represent clients before the IRS.
  • A CPA license allows the holder to practice as a public accountant, perform audits, and provide attestation services.

Work Experience Requirement

  • A CPA certificate is typically awarded after passing the CPA Exam, without requiring verified work experience.
  • A CPA license requires 1-2 years of supervised work experience under a licensed CPA before being granted full authority.

Career Opportunities

  • A CPA certificate holder may work in private industry, government, or corporate finance but cannot present themselves as a licensed CPA.
  • A CPA license holder has greater career flexibility, including the ability to work in public accounting, open an independent practice, or serve as an external auditor.

Continuing Professional Education (CPE) Requirements

  • A CPA certificate does not require continuing education, as it does not grant active CPA status.
  • A CPA license requires ongoing CPE credits to maintain licensure and stay compliant with state board regulations.

State-Specific Recognition

  • Some states no longer issue CPA certificates and require full licensure instead.
  • CPA licenses are regulated by state boards of accountancy, and CPAs must comply with licensing requirements specific to their state.

Which One Do You Need: CPA Certificate or CPA License?

The decision between obtaining a CPA certificate versus a CPA license depends on your career goals and the requirements in your state.

When a CPA Certificate May Be Sufficient:

  • If you do not plan to work in public accounting but want to demonstrate that you have passed the CPA Exam.
  • If you are working in corporate finance, consulting, or government accounting, where a CPA license is not required.
  • If your state still issues CPA certificates and allows you to use it as a credential while working toward full licensure.

When You Need a CPA License:

  • If you plan to work in public accounting or provide services such as audits, tax preparation, and financial consulting.
  • If you want the legal authority to sign audit reports and issue attestation opinions.
  • If your state requires a CPA license rather than offering an interim CPA certificate.

Ultimately, a CPA license provides greater career flexibility and legal authority, making it the better choice for those who want to work in public accounting, open their own firm, or hold executive accounting roles.


Frequently Asked Questions

What is the main difference between a CPA certificate and a CPA license?

A CPA certificate confirms that an individual has passed the CPA Exam but does not grant the legal authority to practice public accounting. A CPA license allows individuals to offer services such as auditing, attestation, and tax representation, provided they meet experience and state board requirements.

Can I work as an accountant with just a CPA certificate?

Yes, you can work in corporate accounting, finance, or government roles with a CPA certificate, but you cannot practice as a licensed CPA or offer public accounting services. A CPA license is required for signing audit reports, issuing attestations, and representing clients before the IRS.

Do all states still issue CPA certificates?

No, some states have phased out CPA certificates and require full CPA licensure to use the CPA designation. Candidates should check with their state board of accountancy to determine the specific requirements in their jurisdiction.

Is continuing professional education (CPE) required for both a CPA certificate and a CPA license?

CPE is typically only required for CPA license holders, as they must stay compliant with state regulations to maintain their active status. CPA certificate holders usually do not have CPE requirements since they are not licensed to practice public accounting.


Bottom Line

While both the CPA certificate and CPA license recognize a candidate’s achievement in passing the CPA Exam, they serve different purposes. A CPA certificate is primarily a credential indicating exam completion, whereas a CPA license grants full professional privileges, including the ability to work in public accounting, sign audit reports, and offer attestation services.

For most professionals, obtaining a CPA license is the ultimate goal, as it opens doors to higher salaries, expanded job opportunities, and professional credibility. However, candidates working in corporate finance, government, or private industry may find that a CPA certificate is sufficient for their career needs.

Before deciding, check with your state board of accountancy to determine whether CPA certificates are still issued and whether a full CPA license is required for your desired career path. Regardless of which designation you pursue, earning CPA credentials is a valuable investment that enhances your career and credibility in the accounting profession.

error: Content is protected !!