Selecting the right financial professional to support your goals can truly make or break your business as a small business owner. It doesn’t matter if you need help with your business’s bookkeeping, tax planning, or even some strategic fiscal business advice–understanding the difference between a CPA vs accountant and recieiving these services from the right professional will make all of the difference.
Each provides very valuable services to small businesses, but the level of expertise, licensing, and legal authority differ on a decently large scale. That’s what makes them each best suited to certain unique business needs. So, today, we’re diving into the practical value of CPAs vs accountants and giving a little guidance on when your business might require one over the other.
Let’s get started!
What is a CPA?
A Certified Public Accountant (CPA), is a professional that is licensed and has met the educational, examination, and work experience requirements in their entirety. If you’ve earned your CPA license, that means you have successfully completed a rigorous amount of coursework in accounting, passed the Uniform CPA Examination, and are in compliance with all state-specific requirements. Note that this certification is recognized nationwide.
More often than not, the more complex financial tasks that are beyond standard accounting are delegated to CPAs. As a certified public accountant, the title holds a weight and authority that holds the licensed individual to a very strict ethical standard. Small businesses working with CPAs can count on access to a deeper level of expertise that otherwise wouldn’t be available in their non-certified counterparts.
What is a Non-CPA Accountant?
Unlike certified public accountants, non-CPA accountants aren’t obligated to pass the national licensing exam. That doesn’t negate the fact that they play an integral role in managing the day-to-day finances of small businesses–especially when it comes to bookkeeping, budgeting, payroll management, and financial reporting. With that being said, most accountants hold accounting, finance, or related degrees that afford them the experience necessary to offer some valuable insights.
One of the main differences between a CPA vs accountant is the scope of essential financial tasks they can offer you and your business..
Key Differences Between CPAs and Non-CPA Accountants
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.
Which is Right for Your Small Business?
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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