Tomorrow's CPA: The Blog

CPA helped launch MySpace

Talk about a trusted advisor. When some buddies with entrepreneurial tendencies built MySpace.com, they looked to their CPA buddy to make their “little concept” into a viable business. That's exciting news for CPA fans, but it is really quite commonplace.  CPAs have the insight to determine the soundness of a business idea and the financial and forecasting skills to turn a start-up into a quickly growing concern.  After all, Phil Knight, a CPA, started a little company called NIKE.

Every entrepreneur needs the expertise of a CPA. How convenient when the entrepreneur turns to a friend who is a CPA, or turns out to be a CPA himself or herself!

CPA vs. accountant: Are they the same?

CPAs are accountants, but not all accountants are CPAs.

We all know that to be a CPA in Maryland you have to complete 150 college credits, pass the CPA exam and an ethics exam and work under a CPA for a year. Very tough (but very doable, for you).

What are the minimum requirements to call oneself an "accountant?" Answer: There are none. No education requirements, no prerequisites. Anyone with a knowledge of Quickbooks could technically call himself or herself an accountant. 

That's no reason to disrespect accountants. But there's a good reason why you should make the extra effort to become a CPA: CPAs enjoy greater prestige, can pursue more sophisticated and challenging careers, and generally earn a larger salary.

The differences between CPAs and accountants are thus clear.  Would you believe there are people out there who want to blur the distinction?  Read here.