All CPAs are accountants while not all accountants are CPAs. Accounting is an art of recording, summarizing, maintaining, organizing, and reporting the financial affairs of the company at the end of the Financial year. Accountant refers to those people who are engaged in the entire process of accounting.
An accountant is responsible and accountable for the true picture of the financial position of the company through the process of bookkeeping, taxes, balance sheet, profit & loss accountant and trial balance, etc. therefore, a perfect accountant is always acting as the backbone of a company and assist in making financial decisions. Everyone is not eligible to perform these tasks without certification.
Certified Public Accountant (CPA) is that certified accountant which has not only passed the CPA level examination. But also adheres to meet the licensing requirements to become a CPA holder. CPAs are the father of an accountant and they allowed to perform accounting duties, preparing audited financial statements, can act as taxpayers and company representatives with IRS revenue officers.
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What is CPA Accountant?
Certified public accountant refers to that person or accountant who completing specific educational, work requirements, and passing exams to get a renowned designation. CPA designation can be earned after clear the CPA test by the association of the America Institute of Certified Public Accountants authority. After getting a precise designation it means a Certified Public Accountant is likely to be more knowledgeable in the sector of accounting. CPAs accountant is also allowed the power to perform certain duties that simple accountants are not permitted to do so. CPA accountant needs to complete the required hours of institute assignments like accounting, auditing, taxation, and legal affairs.
Read here Role of CPA Accountant?
There is no doubt CPA has unlimited responsibility and ability to confidently understand a person’s business finances. The good quality of Certified accountant is to suggest ways to improve financial performance, set goals, and plan strategies on how to achieve them well. They have to inspect financial records to ensure that the information details are accurate and comply with relevant laws and regulations of business.
- The first priority is for organizing and maintains financial records.
- Responsible for preparing tax returns and examining financial statements to ensure information is accurate and relevant
- They are performed to provide financial forecasts for better financial decisions of the company
- CPAs also work on providing auditing services.
- Tax forms and make financial statements that a corporation must provide to potential investors
Who all are Tax Accountant
Certified Public accountant holder a designation who is licensed by their state boards of accountancy after passed the CPA examination. CPAs are often associated with the Tax department and have unlimited put into practice before the IRS. That’s mean they can handle any type of taxes matter and free to represent a various type of taxpayer without any restriction. Normally, CPAs have the privilege to epitomize or stand-in for the tax client at the IRS offices, designated at the treasury department. You can’t afford to skip this important point from your mind that CPAs license is approved only at the state level. Resultant; CPA holders are licensed to only practice within the state of licensing and not out of the state boundaries.
CPA holders specialize in the tax department and their experience and skill of tax code make them enable to identify credits and deductions to reduce taxes. They also experts to serve services like rental property, investment income, and business expenses.
Certified Public Accountants (CPAs) Specialites
CPAs have some specialization in the following numbers of areas which are given below.
- Tax Preparation- this assist in providing individuals and small scale business that are filling to their taxes.
- Government Accounting- this field serves on maintaining and examining the records of public agencies.
- Forensic Accounting- this responsible for investing in financial crimes like security fraud and criminal financial affairs.
- Information Accounting- if CPA experts in IT accounting they can appraisal financial controls for organizing computing systems.
Difference between Accountant abd certified CPA
Let’s understand what the big difference between CPA and Accountant. Here some points are given below which make you clearly differences between both.
- Licensing
CPAs designation a very tricky to pass but people who passed CPAs have to pass accurate testing, practice. They are strict necessities for licensing in which they are proposing to perform. All Certified Accountants need to complete 150 hours of course including upper-level accounting, auditing, and taxes. After passed Certified Public Accountant designation they must attempt comprehensive practice under experienced CPAs in the field of tax, audit, and general accounting. The most important point of CPA is after obtaining licenses they must keep up-to-date, in order to maintain information and changes in the accounting world. Accountants didn’t require passing through all these processes in the accounting system.
- Fiduciary Dependability
This fiduciary part is most important in the accounting world because every small to large business needs to have a financial statement audit to know the financial position of the organization. In this case, to review will have needed a CPA to execute these services and required reports. Main features of CPAs that they have right to act fiduciaries with legal duty and power to act on behalf of clients. On the other side, a simple accountant is not considered and right to perform such an activity.
- Taxes and Regulation
Accountants may prepare tax return but CPAs holders offer additional advantages to their clients. CPAs are having more knowledge and experience in tax codes. Plus they are eligible to represent clients before IRS departments.
- State and codes Ethics
Only License does not require being CPAs while they are also expected to follow a strict code of ethics of that state and stand on a high standard of the profession.
