In the world of accounting there are two classifications of CPAs – active and inactive. The difference between the two is that an inactive CPA is an individual that has passed the CPA exam, but does not represent him or herself as a CPA. Our firm recommends that you hire an active CPA over an inactive one because an inactive CPA may not be up to date on new tax regulations. Active CPAs keep their accreditation by enrolling in continuing educational courses.
A regular indication of whether or not a CPA is active is their network of colleagues. Active CPAs are usually connected to the AICPA (American Institute of CPAs) and to state CPA societies on social media platforms along with other professionals in the same field.
Another method to distinguish an active CPA from an inactive one is to search for their certification (each state has their own certification).
Active CPAs achieve and renew their license in the following ways. Note that the specifics vary from state to state.
• 120 CPE hours every three years, which translates to a maximum of 80 hours completed by self-study or book authorship. Some states require the minimum for each year – within the three-year reporting period – and others focus on the combination of hours in all three years.
• 4 hours minimum of ethics every three years. Some states may require as many as eight hours of ethics required per year.
An accountant is a professional, not regulated by the state, whose job is to keep or inspect financial accounts. It’s important to note that CPA is a state accreditation that shows that this person understands that particular state’s complex tax logic. The only way for an accountant to become a CPA is to pass certain tests conducted by their state.
Verdeja, De Armas & Trujillo, LLC is an accounting firm in Miami that consists of members of the American Institute of Certified Public Accountants and Florida Institute of Certified Public Accountants. We are subject to the AICPA’s mandatory Peer Review every three years and have received unqualified (clean) opinions on all occasions. Our exceptional accounting services and professionals are here to help you and your business thrive. Contact us today for a consultation!