Understanding the difference between CPAs and accountants is especially crucial for small business owners. If you want a head start on making the right decision for your brand’s needs, selecting the right financial expert will save you a lot of time and money in the long run. It doesn’t matter if you’re in need of help with your day-to-day accounting, some routine end-of-the-year fiscal planning, or even more complex financial requirements. No matter your need, understanding how CPA qualifications affect your selection will be the foundation of your business’s fiscal success.
What is an Accountant?
An accountant plays a fundamental role in your business’s fiscal management. They help track your financial transactions, take care of conducting payroll, manage your budgets, and prep and produce your financial reports. A good accountant will always have a strong background in accounting, finance, or a related field that equips them with the knowledge they need to support your business effectively.
That said, the difference between a CPA and accountant becomes painstakingly clear when you analyze the level of expertise, legal authority, and specialized services closely. The typical accountant will be well-versed in the usual day-to-day fiscal operations of a business, like book balancing and finance organizing. Since they aren’t required to pass the CPA exam or meet the stringent licensing requirements, accountants work well with small businesses that need on-going regular support more so than its more extensive, certified counterparts.
CPA Qualifications: What Sets CPAs Apart?
It’s important to understand that CPA qualifications add an extra layer of expertise and specialization that sets CPAs apart from non-CPA accountants. It’s no secret that Certified Public Accountants (CPAs) have to meet some strict standards when it comes to their education, ethics, experience before they get to officially call themselves CPAs. In order to become a Certified Public Accountant, it’s required to:
- Successfully compete an accredited accounting or finance degree.
- Pass the CPA exam
- Complete a specified number of work experience under the guidance of a licensed CPA.
Furthermore, Certified Public Accountants are required to be in compliance with stringent ethical guidelines and continue their professional education for as long as they hold their licenses. They have a steadfast commitment to constantly innovating their business practices and ethical standards as laws and business models continue to change.
Key Differences Between CPA and Accountant
CPAs and non-CPAs both have valuable skillsets to bring to the table when it comes to the benefit that each can bring to your business. Having a keen understanding of these differences is vital when it comes to selecting which is the best fit for your business. A few distinctions include:
Educational and Certification Requirements
The CPA vs accountant distinction becomes glaringly clear when it comes to the education and training one has to obtain to become either. CPAs are required to complete a strenuous string of educational courses, pass the CPA exam, as well as meet their state’s working requirements.
On the other hand, non-CPAs are often educated in finance, they don’t face the more painstaking requirements that CPAs do. That said, non-CPA accountants work wonderfully for general financial tasks.
Scope of Services
It’s no secret that CPAs are authorized to perform some additional tasks that their unlicensed counterparts are not. The CPA vs accountant difference is particularly relevant when it comes to the growth phase that your business is in.
Authority and Trustworthiness
With CPAs being licensed, you can count on them being trusted advisors. Their opinions carry quite a bit of weight in the legal and financial world. They’re also legally required to be in compliance with ethics codes and held accountable in a way that non-CPAs are not.
How to Choose Between a CPA and an Accountant
When you’re choosing between a CPA vs accountant will rely heavily on the services that your business needs and the sheer scope of your financial goals. Here are some things to consider:
Routine Bookkeeping and Financial Management
If you’re in need of regular and ongoing support, accounts payable and receivable, and any other day-to-day tasks, a non-CPA can handle this for you! Non-CPAs are a great cost-effective solution to handle all of your routines in an effective manner while keeping all of the books current.
Strategic Growth and Complex Financial Needs
Are you planning on scaling your business? Maybe you need to secure funding or some additional tax planning. In these cases, working with a CPA would be best for your business! CPAs have the power to deliver valuable insights regarding long-term planning, financial analysis, and tax strategy.
When it comes to your CPA vs accountant decision, understand that it will ultimately depend on the fiscal landscape of your business. Whether you need basic bookkeeping or elevated financial planning, both CPAs and accountants bring valuable sets of skills to the table.
If you’re a small business looking for accounting services, Estess CPAs has you covered! Click here to get in touch with our experts. We’ll make sure all of your fiscal responsibilities are in order while you focus on your business operations.
Let us handle the numbers!
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