![]() ![]() They must complete Continuing Professional Education (CPE) requirements every one to three years as directed by their state board policies. The exam itself tests accountants on tax, auditing, and general accounting skills.Īfter receiving their license, CPAs must sustain it. In coordination with the National Association of State Boards of Accountancy (NASBA), the AICPA conducts the exam and issues the license. Prior to that exam, these individuals also complete education and experience requirements They have passed the Uniform CPA exam as dictated by the American Institute for Certified Public Accountants (AICPA). What is a CPA (Certified Public Accountant)?Ī CPA (certified public accountant) is a licensed accounting professional.“What’s the Difference Between a Bookkeeper and an Accountant?” QuickBooks.“Certified Public Accountant – CPA.” Investopedia. “The Differences Between Bookkeepers Vs.Companies also hire them to provide managerial advice.Įnrolled Agents (EAs) are used for their tax expertise and their ability to represent clients before the IRS.Īre you wondering about the differences between bookkeepers, accountants, CPAs, and EAs? Contact us for a free consultation at (561) 842-1304. The more complex the operations or the organization is, the more important it is to hire an accountant with more expertise.Īccountants or CPAs may perform more technical accounting tasks requiring more expertise. When Should Bookkeepers, Accountants, CPAs and/or EAs be hired?īookkeepers perform technical transactions requiring less proficiency and training than accountants. They also adhere to strict ethical standards. EAs must complete 72 hours of continuing education every 3 years. Like the CPA they must pass a 3-part exam, all based on tax and tax laws. They also give advice in areas like internal and external auditing and forensic accounting.Įnrolled Agent a federally authorized tax professional, who has technical expertise in the field of taxation and is empowered by the US Department of the Treasury to represent taxpayers before all administrative levels - examination, collection and appeals - of the IRS. Many CPAs get promoted to high-level executive positions as controllers, for instance. Many careers are available to CPAs in public or corporate accounting. They may also be in charge of preparing and maintaining financial statements. They perform activities such as tax preparation, financial planning, and investment planning. They take a standardized exam to earn their state licenses.ĬPAs can handle a variety of complex tasks for businesses and individuals. They may also prepare financial statements and perform tax planning activities.īesides a college degree, CPAs also have an extra 30 hours of college coursework. Accountants interpret and classify financial data. They are also more likely to work for larger companies.īookkeepers record financial transactions. These include computing the allowance for accounts receivable or depreciation. ![]() Their duties generally involve more complex transactions, and adjustments to a company’s books. Unlike bookkeepers, most accountants have college degrees in accounting or 120 to 150 college credits. The Enrolled Agent (EA) will make use of the bookkeepers’ records to prepare the business’ taxes. In terms of salaries, bookkeepers may be less costly to a business than accountants or Certified Public Accountant (CPA). In many instances, bookkeepers may work closely with accountants. More experienced or certified bookkeepers grow in their careers to become accountants. Some of their other responsibilities may include payroll, collection activities and bank deposits. ![]() In some cases, bookkeepers are also responsible for Accounts Payable or Accounts Receivable. Their duties consist in entering transactions into bookkeeping journals and preparing monthly reports. Their main tasks revolve around day-to-day recording of business transactions and monthly accounting cycles. Traditional bookkeepers don’t need to have a college degree. Yet, there are some significant differences between them. You may also have noticed that these terms often get used interchangeably. You may have heard about the terms bookkeeper, accountant and Certified Public Accountant (CPA), but you may not have heard about Enrolled Agents (EAs). ![]()
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