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CPA Accountant or Bookkeeper

What is the difference between a CPA-Accountant and Bookkeeper

What Is a CPA?


Certified Public Accountant CPA is an individual who has passed the uniform CPA examination administered by the American Institute of Certified Public Accountants and who has received state certification to practice.  To achieve this designation, an individual usually has to complete 5 years of education, and a certain number of hours of work experience under a licensed CPA Additionally, once an individual becomes a CPA, they typically must complete a certain number of hours of continuing education on a biannual basis.

What Is The Difference Between A CPA And An Accountant?


CPA and Accountant perform almost the same duties. But the fact is that all accountants cannot be Certified Public Accounts whereas all CPA’s are accountants.
A good accountant is a person who looks after financial records. An accountant would have good knowledge about owner’s equity, cash flow, chart of accounts, balance sheet and how these are going to affect your business.


A good accountant is responsible for the accounting works of an individual or a business.  It is the accountant’s responsibility to issue financial reports. Accountants need not be certified professionals nor in many states even licensed.  It is more a title that has been bestowed upon an individual.  There is no education requirement to receive the title of accountant, although many do have some level of education in accounting topics.


On the other hand, CPA is a professional who is regulated by the state.  When comparing the works of both the professions, an accountant cannot do the work that a Certified Public Accountant can do.


An accountant cannot do the same work as a Certified Public Accountant whereas a CPA can do all work of the accountant. Unlike the Accountant, the Certified Public Accountant typically has a higher position in the financial and business circles. It is the Certified Public Accounts who are capable of advising on the financial aspects of a company. The CPA are trusted more than an accountant in financial matters. Even if an accountant’s views are valued, the last word is always from a Certified Public Accountant.


What Is The Difference Between An Accountant And A Bookkeeper?


Before I provide a distinction, you should be aware that many people use these words interchangeably.  Generally, a bookkeeper is a person typically without a college degree in accounting, who performs much of the data entry tasks. This includes entering the bills from vendors, paying bills, processing payroll data, preparing sales invoices, mailing statements to customers, etc.  The accountant is likely to have a college degree with a major in accounting and takes over where the bookkeeper leaves off.   They may have chosen to not seek the level of education as a CPA or are working toward that level. The distinction between accountant and bookkeeper keeps changing as accounting software and other software evolves. For many years, companies used the title of accounting clerks for employees doing the tasks formerly performed by bookkeepers. The accounting clerks are usually supervised by an accountant.


Why Use A CPA?


Starting or growing a business is a formidable task for an entrepreneur.


There are many benefits to using the services of a knowledgeable and experienced Certified Public Accountant (CPA). Today's modern CPA does far more than taxes and audits.  A CPA can be a personal financial planner, a management consultant, a management information specialist, a business consultant, tax problem solver and more. By using a CPA a business owner gets definite tangible benefits, e.g., savings in taxes, reduced operating costs, solutions to personnel problems, advice on retirement plans, and even help with marketing.  And, they also get the intangible benefit of having a knowledgeable CPA involved with their business and investments over a long period of time.


Perhaps one of the most beneficial services that a CPA can provide for someone concerned about their finances and taxes and about the management and accounting for their business is simply talking things over. It is satisfying to know that someone else, who is discreet and knowledgeable, knows what is going on in your business life. CPAs have developed long-standing relationships with their clients and their clients have found that it is very useful to discuss the organization of their operations and their financial and management concerns with their trusted CPA.
Finally, Certified Public Accountants are licensed and regulated by the each state’s Department of Business and Professional Regulation. Accountants are not.


CPA Services – A Guide To Understanding & Using CPA Services
The following information is to help you determine if you require the services of a Certified Public Accountant. Take a look at the headings below and click on the appropriate topic to learn more information about how a CPA can help you.
CPA as Advisor to Small Businesses
CPA as Auditor
CPA as a Tax Advisor
CPA for Tax Services
CPA as Estate Planner
CPA as Personal Financial Planner
CPA as a Tax Problem Solver

 

 

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