What’s the Difference Between an Accountant and a CPA?

As more and more start-ups and small to medium businesses become aware of how the economy’s dynamics can affect operations, business owners are inclined to hire someone to do bookkeeping and beyond. But one common question that goes around is: why pay extra to hire a Certified Public Accountant (CPA)? Can’t a regular accountant do the same job?

The quick answer is no.

All CPAs are accountants, but not all accountants are CPAs. An accountant is simply anyone with background knowledge on accountancy. He or she may know how to operate QuickBooks or any other accounting software. But beyond bookkeeping, accountants find themselves at a certain disadvantage when compared to the skill set and leverage a CPA has. Here are some basic differences between a regular accountant and a CPA.

1. CPAs are licensed professionals.

To become a CPA, you have to pass rigorous examinations in order to acquire a State license. To do this, one must be proficient in a multitude of areas in business, and this includes economics, information technology, taxation and general accountancy. And the studying and immersion in these fields does not stop the moment a CPA acquires a license. He or she must comply with more education requirements so they can maintain their license. This guarantees that CPAs are always up to date with current issues, policies, market trends and changes that may affect your business.

For example, if there is a policy change regarding your tax bracket, a CPA will be able to deliver a smooth transition whereas a regular accountant does not have the authority to issue the necessary changes.

2. CPAs have the power to make financial statements.

Let’s say your small business is ready to expand and you’ll be needing a bank loan. All banks will require you to submit a financial statement or financial audit. Only a licensed CPA can perform these services.

3. CPAs are more knowledgeable on taxation.

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A large part of the licensure exams covers all fields of taxation, and only a CPA can offer complete advice and comprehensive plans of action for tax compliance. In addition, CPAs must take a new tax course year after year, which makes them fully aware of updates and changes on tax laws.

4. CPAs can represent you before the IRS.

If you need to meet with the IRS, a CPA can represent you and your business, while a regular accountant may not. Only a CPA can offer legitimate audit support before the IRS.

5. CPAs are qualified financial advisers.

Lastly, CPAs are not just ordinary bookkeepers who count, add, subtract and tally totals. They are experienced financial strategists who could provide your business the leverage it needs to fulfill different business goals.

If you are in need of accounting and tax services, consider only the best. Get in touch with Hazzouri Accounting today. We provide professional tax preparation services for individuals and businesses. Khaled Hazzouri is a CPA with over 17 years of experience in helping individuals and businesses with their taxation and accounting needs. Hazzouri Accounting is known for its strong community ties with the locality in Canton, Michigan. We believe in building lasting relationships so you can be assured that you will amount to more than just a mound of paperwork.

If you have plans of starting a business and are in need of proper guidance when it comes to taxation, contact us today. If you are an established company in need of payroll help, bookkeeping services, or other accounting needs, Hazzouri Accounting can do it all for you. We are available by phone at 734-844-1614 or use our on-line contact form and someone will be in touch with you shortly.

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