difference between accountant and CPA?

You got it about right, CPA's are licensed by the state and have to pass a national CPA examination. To call yourself an "accountant" you don't have to pass a test, have experience or anything, just

.

Couple of other distinctions:

1) Only CPA's can sign off on financial statements (i.e., provide an audit or review opinion). I believe it also takes a CPA to issue a compilation report even though no assurance is provided in the case of a compilation. 2) CPA's can automatically represent clients before the IRS (this does not mean simply preparing tax returns) whereas if you're not a CPA, you'll need to become an Enrolled Agent to do so. 3) due to the rigors and requirements of the state boards of accountancy, CPA firms and the profession itself put on the individual, CPA's would generally be paid more than a non-CPA performing the same work.