The certified public accountant Fairview Park might
as well be what we should need to call an individual whom people often mistake
as a bookkeeper or as an accountant (better) and finally with the best
reference as a CPA or a certified public accountant.
Many
people think that a bookkeeper, an accountant, and a certified public
accountant are one and the same. Incidentally, anyone of the three can provide
accounting services. the big difference is that a certified public accountant
is a licensed professional.
The
first requirement for a certified public accountant is to have a bachelor’s
degree in business administration, finance, or accounting. This is honored in
most countries in the world. As to the qualifications, they are required to
complete 150 hours of education and one year of related accounting experience.
General services
Our CPA
does related work to the assurance services. Unlike others, they can attest to
the authenticity of their work in financial audit services. However, they need
to adhere to the applicable and generally accepted principles of accounting.
Since
they are licensed professionals, they can work as financial analysts, finance
managers, controllers, chief financial officers, even as chief executive
officers. As CPAs, they do not directly give services to the public.
They
are also well-known in their role in income tax preparations. Naturally, they
can also work in other areas like auditing, bookkeeping, forensic accounting,
and in these days, the information technology.
Educational backgrounder
Like
many professionals, certified public accountants are required to maintain their
licenses. Those that had been awarded their CPA title but have lapsed in the
fulfillment of the required continuing professional education (CPE) are
considered “CPA inactive”.
In many
U.S. places, only the CPAs are legally able to provide public attestation
opinion on financial statements. Some states have varied interpretations
regarding whether a non-CPA can even use the title accountant.
CPAs,
tax attorneys and Enrolled Agents are some of the official people who are allowed
to represent a taxpayer before the IRS (internal revenue service). The
privilege is in honor to their having the credibility and expertise after
having passed certain examinations and other statutory and licensing
requirements of a state.
Comparisons
For
clarification purposes, a bookkeeper is one person who works for a company
either as an employee or a contractor to keep their financial books in order.
These days, bookkeepers use accounting software like QuickBooks for their work.
The bookkeeper
is also responsible for accurately recording transactions including accounts
receivable, accounts payable, inventory and (sometimes) in payroll. They can also
provide reports on a monthly, quarterly and annual basis for their work. However,
they don’t analyze reports nor give out tax advice.
Accountants
In some
ways a level up from the bookkeepers, accountants don’t perform bookkeeping functions
(even if they can). They usually prepare financial statements in detail and do
audits of the books of public companies. They can prepare reports for tax
purposes.
As
professionals, they are classified by the IRS as “un-enrolled preparer”. This
means they have no standing with the IRS in the matter of signing tax returns
or representing clients during tax audits and other related matters with the
IRS.
