What Does a CPA Do?

A CPA helps organizations and individuals produce trustworthy financial information and use it to meet reporting and tax needs. Depending on the assignment, a CPA examines financial records, prepares or reviews financial statements, or handles tax work. The CPA investigates discrepancies and documents the evidence supporting conclusions. In an audit, the CPA evaluates evidence to form an opinion on financial statements, while management remains responsible for those statements and its business decisions. This work supports reliable reporting and gives decision-makers a sound basis for action.

What Is a CPA?

A certified public accountant, or CPA, is an accountant licensed by a state board of accountancy, the District of Columbia, or a U.S. territory. The credential identifies a licensed professional rather than one particular job. CPAs work in public accounting, businesses, and government, and their responsibilities vary by position and specialty. The IRS explains that CPAs have unlimited representation rights in federal tax matters, including audits and appeals.

Some CPAs prepare or review financial statements, while others focus on audits or taxes. In an audit, a CPA evaluates evidence to support an opinion on financial statements. That opinion is not a guarantee that every error or instance of fraud will be found.

What Are the Main Responsibilities of a CPA?

A CPA’s responsibilities depend on the employer and assignment. In financial reporting, the CPA organizes accounting information and checks whether account balances are supported by underlying records. For example, the CPA may compare a ledger balance with a bank statement and investigate a difference. If an adjustment is warranted, the CPA records and explains it so the financial information reflects the available evidence.

For an audit, the CPA considers where a material error could occur and selects procedures to gather relevant evidence. The CPA documents and evaluates the results to support an audit opinion. Management remains responsible for preparing the financial statements and making the organization’s business decisions.

Tax work may involve preparing returns from completed-period transactions or analyzing the tax effects of a proposed transaction. In a company role, a CPA may compare actual results with a budget and explain significant variances to managers. The CPA’s work helps readers understand financial results and helps organizations address reporting or tax questions.

What Does a CPA Do on a Daily Basis?

A CPA’s day often begins by checking assignment deadlines and identifying records or explanations that are still outstanding. On a reporting assignment, the CPA reviews account balances against supporting documents and asks colleagues or clients about missing information. If an account does not reconcile, the CPA traces the figures to transactions and determines whether the difference reflects an error or a timing issue.

Once the information is available, the CPA performs procedures suited to the work. For an audit, this may mean testing selected transactions. For a tax assignment, it may mean calculating amounts for a return. The CPA documents the procedures and supporting evidence, then communicates findings or requests information needed to finish the assignment.

What Skills Does a CPA Need?

Analytical thinking helps a CPA determine why financial records do not agree. For example, a difference between a bank statement and a ledger may reflect a transaction that has not cleared rather than an accounting error. The CPA traces the entries before deciding whether a correction is appropriate. Attention to detail helps ensure reported figures match their supporting evidence.

Communication skills help a CPA obtain useful information and explain findings. Clear questions can help a client or colleague locate evidence when records are incomplete. Writing skills matter when documenting audit procedures or explaining a reporting issue to managers. Accounting knowledge helps the CPA assess whether records and supporting documents are consistent with the assignment.

How Much Does a CPA Earn?

The U.S. Bureau of Labor Statistics does not publish a separate national wage estimate for licensed CPAs. It reports wages for the broader accountants and auditors occupation. The median annual wage for that group was $83,680 in May 2025. This figure is not specific to CPAs. Individual earnings vary by experience, location, employer, and specialty.

What Is the Career Progression for a CPA?

Career paths vary with a CPA’s experience, specialty, and employer. Early work may involve preparing or checking records while supporting tax or audit assignments. With experience, a CPA may take on more complex analyses, review colleagues’ work, or coordinate an engagement.

In public accounting, a CPA may develop expertise in tax or audit and take on broader engagement responsibilities. In a company, a CPA may move into financial reporting, planning, or accounting operations. Some CPAs build a specialized practice or provide independent services. The credential alone does not determine seniority or management authority; those depend on experience and position.

How Contingent Workforce Management Helps Businesses Hire CPAs

Contingent workforce management services help businesses arrange and administer temporary or project-based work. A company approaching a reporting deadline may need a CPA for a defined period to reconcile accounts and document audit support. For a suitable assignment, hiring a worker directly and using third-party payrolling can be a lower-cost alternative to a staffing agency.

TCWGlobal helps companies manage contingent CPAs through payrolling and workforce support during an assignment. This approach can save money by avoiding a staffing-agency markup and the cost of creating a permanent position for a short-term need. It can also reduce administrative work related to onboarding, time tracking, and payment, giving the accounting team more time to complete reporting work.