<p>Recently, I had an argument with my accounting professor about being a CPA. My professor believes that only those, who have a CPA license, can call themselves accountants. Before he provided me with some examples, I was against his statement: I thought that anyone who has a degree in accounting, whether it is a bachelors or a masters, considered to be an accountant. Now, I realized that there is some truth in his words. First, he tolld me about lawyers, "If you don't pass a BAR exam--you are not a lawyer; however, you can say that you have a degree in law." Then, he talked about nurses, and that they also have to pass some kind of exam to be called the way they called, and the same thing with doctors, who must have a license in order to be a doctor. Still, I asked him about people who have other professional certifications in accounting, such as CIA, EA, CMA, etc. And his answer was: "If you are a CIA, then you are an auditor--not an accountant :). Basically, he meant that your license represent who you are, and only a license allows you to call yourself a certain person.
I found this argument to be interesting, and I would like to hear your opinions and examples on this topic.</p>
<p>No they don’t. A nurse is a nurse. An RN is an RN. You’re right. Your professor is wrong, and probably runs in the same circles as taxguy. Accountant=/=CPA.</p>
<p>Furthermore, you can have a CPA and not be an Accountant (certified or otherwise) due to a weak GPA. However, a high school graduate with a strong GPA could get himself a job in Accounting. Funny how that works.</p>
<p>One who practices law is a lawyer; however, it’s illegal to practice law if one hasn’t passed the BAR exam. So you won’t find a lawyer who didn’t pass the BAR.</p>
<p>One who practices accounting is an accountant. Unless working in the field of public accounting, many accounting functions don’t require licensing, e.g. cost accountant/financial accountant work internally in a corporation. Even in public accounting, not all functions require CPA license. e.g. an enrolled agent can prepare a client’s tax return, he/she just can not represent the client in front of IRS, but CPA can. Furthermore, CPA cannot represent client in tax court, a tax attorney can. </p>
<p>So one can be an accountant without a CPA title. CPA is an accountant, but an accountant is not necessary a CPA.</p>
<p>Yes, but again the CPA license means that you are a Certified Public Accountant, which proves that you are an accountant. However, the degree in accounting does not prove that you are an accountantit just states that you have a degree in it. Yet, you can work in the accounting field without being an accountant, just by having a degree in accounting. As I know, nurses must pass a certain exam, without it, even if you have a masters degree in nursing, you cannot be called/work as a nurse. Some people pass the nursing exam by just compleating an associates degree, and when they receive their license, they stand higher than those people who just have a degree in it. The same applys to accounting: a person, who has a bachelors dgree and the CPA license, is valued more than a person with just a bachelors and master degree in accounting. With that being said, it is not neccessary to get masters degree in accounting; instead, obtaining a license is a much better choice.</p>
<p>Whistle,
Yes, I came from another country and English is my third language lol, but I know that in order to become a RN or any type of nurse, you have to obtain various types of certificates, such as CNA (Certified Nursing Assistant), LPN/LVN (Licensed Practical Nurse/Licensed Vocational Nurse), RN and pass the National licensing examination or the NCLEX-RN. You can do it by compleating just an associates degree, or a bachelors.</p>
<p>In most states different job titles and names are legally restricted to those qualified to hold them. Nurse, Doctor, Lawyer etc. Usually performing serivces associated with these titles is also restricted to these titles - You can’t say “I’m not a nurse, I just do the work of a nurse.” </p>
<p>This is true for accounting too. In a lot of states it is illegal to call your self an accountant without being a CPA. If you complete the a 4hr ethics course approved by the CPA board for your state this should be covered.</p>
<p>For example in Texas if you are not a CPA it is illegal to (although some of this is poorly enforced):
Call yourself an accountant
Call yourself an auditor (unless you work for a CPA firm under the supervision of a CPA)
Offer accounting services (unless you work for a CPA firm under the supervision of a CPA)
Complete tax returns (other than for yourself) (unless you work for a CPA firm under the supervision of a CPA)
Offer/ Perform attest/ audit services (unless you work for a CPA firm under the supervision of a CPA)</p>
<p>Whistleblower you are wrong about nurses. A nurse is an RN who has passed the NCLEX. A CNA is not a nurse and a lpn is another name for **** cleaner. None of them are called nurses in the hospital.</p>
<p>RN=REGISTERED Nurse. The only person who can perform the full range of nurse duties are RNs.</p>
<p>In order to get the RN license you must pass the NCLEX and go through a series of other certifications (mostly done while in nursing school). CNAs and LPNs cannot distribute medication or perform any invasive procedures. They can draw blood, take vital signs, and clean up excrement. They aren’t nurses.</p>
<p>^Well, they are stereotyped by people who know nothing about accounting, besides that they are doing taxes and bookkeeping. I heard people talking bad about accounting, especially those people who are in medical/pharmacy fields (I call them, “easy and unfair money makers”). </p>
<p>I thought and read that CPAs are respected in the finacial world. Isn’t that true? For instance, if we take into consideration other countries, the pharmacists and nurses are treated way worse than accountants, and get paid much less. I do not know what is going on in the U.S. that nurses and pharmacists are getting paid higher. It is unfair that a nurse with an associates degree gets paid more than accountant does, right after college. Pharmacist that work at the pharmacy stores don’t do anything, and they are payed almost twice as much higher than accountants.</p>
<p>Why are you only taking into account starting salaries? CPA’s have greater earning potential later in their careers as they move into private industry or senior accounting/finance roles.</p>
<p>Later is when? After 10 or 15 years? I know RNs who are started at 70-80k. As you know, an accountant cannot earn 70k right after college. He/she can earn that amount of money by working at the big 4, for approximately 4 years. Later on, if you become a CPA, you still will not make more than 120k, unless you are a CFO or a partner. But, it is almost impossible to become one. Even at the management level, accountants are payed 70-90k. WHY IS IT SO UNFAIR??? :(</p>
<p>In Big 4 public accounting, yes, you won’t be making more than 75-80K (really varies depending on location) in your 4th year, and it will probably take 7-8 years to make manager or senior manager (and usually 10-12 years to become partner). Yes, the pay sucks, and everyone knows that. But why do people still work there? For the brand name recognition and better exit opportunities later in your career. That is why most people leave within 4-5 years and move into corporate finance/accounting and rake in around 100-160K as a controller/related positions (again, varies by size of firm and location). Honestly, that is great money and not as stressful as public accounting. Of course, you can always go into consulting, move up in your F500 company within the Finance division, make CFO, or just stay in public accounting long enough to make partner (where you’ll make 400K-1million, depending on location and years as partner). </p>
<p>Let’s stick to the business field (ignore nursing because that is totally irrelevant and appeals to people with a totally different interest), you really can’t make much more unless you’re in investment banking or consulting at a top firm.</p>
<p>Using CPA after your name implies you have passed the Uniform CPA exam and hold a state license. (note - not all states have the same licensing requirements with regards to # accounting courses [does not need to be accounting major], years experience, etc. I am a licensed CPA in the state where I attended college and worked for a few years, but since I never worked in internal audit or public accounting, I cannot get a license in the state in which I currently reside). </p>
<p>nj2011mom, what state is that? New Jersey? To my knowledge, licensed CPAs are those that not only passed the exam, but also have experience in public accounting. (ie: states won’t grant licenses without the right experience) </p>
<p>There are only about five states that are two-tiered, meaning they grant certificates to those passed the exam but without the work experience in public accounting. This makes sense for those whose job in the private sector, government, or areas outside of accounting firms prevents them from being fully licensed.</p>