WHAT IS A CPA?

I am compelled to write today’s blog on this topic because every year at this time I become aware that the general public does not know the difference between a certified public accountant (CPA), H&R Block and the corner bookkeeper.

CPA’s are college graduates that have passed a prescribed number of class hours. Most of today’s graduates have received a Master of Accountancy. After receiving the appropriate college education, each man and woman must pass the Uniform CPA Exam. This is a two and one-half day examination covering all facets of accounting and taxation. Upon successful completion of the examination, the individual must then complete a minimum of one year of approved accounting work related experience. Then, and only then, will they receive their designation as a Texas Certified Public Accountant. License’s are granted by and renewed by the Texas State Board of Public Accountancy.

Only those individuals completing this process may hold themselves out to certified public accountant. Only certified public accountants may perform audits. Only CPA’s, licensed attorneys, and licensed enrolled agents may represent you in Tax Court.

CPA’s must display their valid, annually renewing license. Anyone that cannot produce a license is not a CPA and cannot legally hold themselves out to be a CPA. Not H&R Block, Betty’s bookkeeping or any other non-licensed company.

In the last quarterly newsletter from the Texas State Board of Public Accountancy, there were 16 non-CPA firms sited for holding themselves out to be CPA’s. San Antonio is a hotbed for this type of illusion. Frankly, this is just the tip of the iceberg.

Buyers beware……….don’t hesitate to ask for credentials. If someone tells you that they are just as good as a CPA, ask them for their license.

Steve Cook is the managing shareholder for Cook and Associates, PLLC, a full service CPA firm, with offices in San Antonio and San Marcos.