Difference Between a CPA Certificate and a CPA License

Sun Jul 09 2023

CPA Certificate Vs. CPA License

The CPA course certificate implies you have finished the academic coursework necessary to practice as a Public Accountant and have the skill to provide professional services. To get the CPA course certificate, you must pass the CPA test and meet the minimal criteria. However, to get a CPA license, the candidate must complete the practical training and experience requirements. Once you have completed all of the prerequisites, the accounting body or authority will award you a CPA license.

Each state has its own set of laws and standards that regulate the CPA profession. In addition, each state has its Board of Accountancy that oversees the CPA licenses.

Even though there is a legal distinction, the terms “CPA certificate” and “CPA license” are interchangeably used in most jurisdictions. There is, however, a contrast between the two in the case of “two-tier states.”

How to get a CPA Certificate

The only criteria to get a CPA certificate is to clear the CPA exam. Below is the eligibility, structure, costs incurred, and the syllabus for the CPA exam.

Eligibility for CPA Course

A candidate must be a Postgraduate, ideally in Commerce, to be qualified for the U.S. Certified Public Accountant (CPA) test. Their educational background also determines Indian students’ eligibility for the CPA course test. Candidates with any educational backgrounds listed below are qualified to take the CPA course test.

Member of the Indian Institute of Chartered Accountants
Member of India’s Institute of Cost and Works Accountants
Member of the Indian Society of Company Secretaries
Master of Business Administration
M.COM

Some jurisdictions in the United States recognize Indian CAs with a B.Com degree. However, the criterion may differ from one state to the next.

Syllabus of the CPA Course

The applicant must take four exams:

Auditing and Attestation (AUD)
Discipline [Bar/ISC/TCP]
Financial Accounting & Reporting (FAR)
Regulation (REG)

Course Fee for CPA

The following are the CPA course fees by subject:

AUD (Auditing and Attestation): $356.55
FAR (Financial Accounting and Reporting): $356.55
REG (Regulation): $356.55
Discipline (BAR/ISC/TCP): $356.65

Difference between a CPA certificate and a CPA license

Subjects	CPA Certificate	CPA License
Job Experience	To earn the CPA course certificate, the candidate does not require any prior job experience.	To acquire the CPA course license, the candidate must have prior job experience. Most states need at least 1-2 years of relevant accounting experience under the supervision of a CPA.
Continuing Professional Development	The candidate just has to pass all of the CPA tests and has no continuing education requirements for the CPA course credential.	For the CPA license, candidates must pass all CPA tests and complete at least 40 hours of continued education each year.
Official Document Attestation	With a CPA certificate, the candidate is not permitted to sign tax returns, audit reports, or use the term CPA on any official or legal report.	With a CPA license, the candidate can sign tax returns, audit reports, and use the term CPA on any official or legal report.
CPA Firm Owner or Partnership	The candidate cannot be the owner or a partner in a public accounting company.	The candidate might be the owner or a partner in a public accounting business.
Use of CPA title	Only some states allow the candidate to use the designation CPA after their name on unofficial documents.	All states allow the candidate to use the designation CPA after their name on unofficial and official documents.

One-Tier Judiciary-

Each 55 U.S. states and territories’ Boards of Accountancy may have slightly varying certified public accounting licensing requirements. The Boards have designed a reasonably straight road to the CPA license in so-called “one-tier” jurisdictions. In these states, passing the CPA Exam and having a specific education and experience is sufficient to obtain the CPA certificate and license.

Alabama
Connecticut
Hawaii
Illinois
Kansas
Nebraska
Oklahoma

As an example, consider the state of Illinois. As a two-tier state, you will have to interact with two distinct state bodies to obtain your CPA accountant license. To pass the first tier, you must pass the CPA Exam and an ethical exam. According to the Illinois Board of Examiners, the Illinois Certificate of CPA Exam Completion will offer you the “Illinois Certificate of CPA Exam Completion” if you pass the CPA Exam and complete Illinois’s ethics exam criteria. Then, once you’ve satisfied the experience criteria for the second tier, you’ll apply to the IDFPR for your CPA license (Illinois Department of Financial and Professional Regulation).

CPA Certificate and its perks

The CPA certification is offered to individuals who pass the CPA Exam.

The majority of jurisdictions do not require job experience.
There is no CPA CPE (continuous professional education) hours necessary to maintain CPA certification.
Your prospective area of employment is limited because certificate holders are not allowed to run a CPA company (either as a sole owner or as a partner) or sign audit reports.
You cannot generally represent yourself as a CPA. Some jurisdictions, however, permit you to refer to yourself as a “CPA but not in public practice.” Others, though, do not let you use the title in any form.

CPA LICENSE and its perks.

Typically, 1-2 years of work experience overseen and validated by a CPA license holder is required.
CPE hours are necessary to keep your license current. Most states demand at least 120 hours every three years.
You can use the term CPA on your business cards, run a CPA firm, and sign audit reports.

CPA for International Candidates-

It makes no difference whether you operate in a one-tier or two-tier jurisdiction; you’ll only earn your CPA credential after passing the CPA Exam. Hence, obtaining the CPA certificate is the first step. The “second step” is the license or authorization to practice. In reality, many overseas students pursue certifications just because the CPA qualification is primarily utilized to boost their credentials. Most states have shifted from a two-tier system to a one-tier system due to confusion and certain abuses.

Other Forms of CPA Licensing

The status of your CPA license is described in most states using a variety of phrases. The terminology used is active, active certificate, practicing, registered, inactive, inactive with experience, non-practicing, expired, and lapsed.

CPA License Inactive or Non-Practicing

Some states provide inactive or non-practicing licenses to CPAs who are no longer actively practicing. These non-reporting or inactive licensees may or may not be required to meet CPE obligations, depending on the jurisdiction. Furthermore, inactive CPAs frequently do not have to pay licensing fees regularly. If you have an inactive license in most jurisdictions, you must indicate that in your title.

A CPA career is a very lucrative option and can widen your career scope. Besides, due to global recognition, it is relatively easy to get a job abroad. If you are having difficulty meeting the educational or experience criteria, Simandhar Education can assist you in resolving the problem. Get in touch with us to kickstart your CPA career.

For more information on the CPA course and its required skills, please feel free to Contact Simandhar Education @ +91 7780273388 or mail us at info@simandhareducation.com .

FAQs

1. What is the difference between a CPA certificate and a CPA license?
A CPA certificate confirms you’ve passed the CPA exams but does not authorize you to sign audit reports or practice public accounting. A CPA license, on the other hand, requires work experience and continuing education—and allows you to officially practice, sign reports, and use the CPA title on legal documents.

2. Do I need work experience to get a CPA certificate?
No. Most jurisdictions allow you to earn a CPA certificate without prior experience, just by passing all four sections of the CPA exam. However, to obtain a CPA license, most states require 1–2 years of relevant supervised work experience.

3. Can I call myself a CPA with just a certificate?
Not officially. With a CPA certificate, some states allow limited use of the CPA designation, such as on resumes or business cards, but not for public practice. Only with a CPA license can you legally use the CPA title on audit reports, tax filings, and other official documents.

4. Is continuing education required for a CPA certificate?
No. Holding a CPA certificate generally does not require you to complete Continuing Professional Education (CPE) hours. However, maintaining an active CPA license requires regular CPE—typically 40 hours annually or 120 hours every 3 years, depending on the state.

5. Should international candidates pursue a CPA certificate or license?
International candidates often start with a CPA certificate to boost their credentials and prove their technical expertise. However, for career advancement or public accounting roles, especially in the US or with Big 4/MNCs, obtaining a CPA license is highly recommended. Simandhar Education assists candidates in fulfilling eligibility and licensing requirements, even in two-tier states.