5 Major Points of Difference Between a CPA and an Accountant
Job Role
When comparing the job role, an acucontant’s job is limited to the processing work of keeping a track of financial records and statements. He/ she is responsible for tracking and recording the daily transactions of a business.
A CPA’s job role is vast. Along with keeping records of financial statements, such professionals also involve in taxation services and provide sound financial advice and strategies to make a business grow.
Licensing
For a person who wants to be an accountant, there are no specific licensing requirements that he/ she has to meet. The person just needs to come from an accounting and finance background, or have sound knowledge on the subject matter.
When a person pursues a CPA degree, he/ she needs to have a license to get qualified and earn the Certified Public Accountant’s (CPA) degree. For that, they need to meet specific educational and exam requirements.
Representative to The IRS
An accountant in Hermosa Beach by no means has any kind of ground or standing to represent themselves in front of the Internal Revenue Service (IRS). More so because they are not adept with taxation services.
On the other hand, a CPA has the right or power to represent a person paying taxes in front of the IRS. This is because their job role demands them to get adapted to tax laws, regulations, and tax services as well.
Governing Body
An accountant does not have a council of members to whom they have to report, or to whom they are answerable. They report to the top management of the company that they serve. An accountant in Hermosa Beach does not have a governing body. Whereas, when it comes to a CPA, they have a governing body which we know as the American Institute of Certified Public Accountants. Their issues are addressed by the AICPA as well.
Cost of Hiring
Owing to the limited roles and responsibilities that an accountant is subjected to, the cost of hiring them is less.
That is the reason why many companies especially startups, choose to hire accountants.
It is very obvious considering the roles of a CPA, that hiring them would cost significantly more than hiring an accountant. That is why people prefer going for a CPA degree to secure highly-paid jobs.
