Can there be a lawyer without the prerequisite LLB degree or even a doctor without the basic MBBS degree? No, would be the answer from all of us. But a person can be an accountant S Lewis CPA for example without having a degree or certification in his name. Many small businesses hire the services of people with knowledge of accounts and financial statements to maintain their books. On the other hand, a CPA has the professional certification to act as a certified accountant in their state. CPAs are naturally professionals who are accountants, while the same cannot be said about accountants who may be CA, CPA, ACCA, CMA, or may not hold any of these certifications. Let’s take a closer look at bookkeeper vs accountant vs cpa.
CPAs are certified public accountants with influence and respect in the field of accountants with little or no certification. Only a few who study accounts can pass the Uniform Public Accounting Examination and have the intelligence, integrity, and ethics to maintain high professional accounting standards. The exam is so difficult that only about 20% of those who take it manage to pass it, and many pass it on the 2nd, 3rd, and even 4th attempt. CPA is considered the American equivalent of the CA exam, popular in the UK and other Commonwealth countries. The exam was conceived as a tool to standardize the skills of accountants who perform audits and prepare companies’ financial statements. Even after passing the grueling exam,
CPAs are top-notch accountants who not only prepare tax returns for individuals but also act as financial strategists and manage the finances of individuals and businesses. They also help with business diversification, performing the basic function of preparing financial statements and auditing companies. CPAs have the expertise to analyze information to help companies make sound financial decisions. This means that they can help a company increase its profitability.
What Is The Difference Between CPA And Accountant?
- An accountant is a person who has knowledge of accounting and can keep the books of a small business, while an accountant is a certified public accountant who is a true professional who has obtained certification or diploma in the accounting world.
- An accountant is also an accountant, although he has much more influence and respect than an accountant without professional certification.
- An accountant’s opinion is final and carries more weight than an accountant’s.
- The CPA is certified to perform audits, whereas an accountant cannot.
- The CPA is a company’s representative while dealing with the IRS, whereas the accountant is called only when he has prepared an individual’s tax returns.