What is the difference between an Accountant and a CPA?

 Looking to hire the professionals for preparing the financial reports of your business in Sarasota? However, you may be confused between two words an accountant and CPA. Most people believe that these both have the same meaning as they both operate with financial records. However, their job responsibilities are different among organizations. 

 

The question comes in mind which one should you select for services of accounting and income tax preparation in Sarasota. In fact, the answer completely relies on your requirements. If your tax conditions are simple and need to calculate only income as well as deductions on a return, then it can be done by an experienced accountant in Sarasota. On the other hand, if your tax preparation requires additional value knowledge and services then you must opt for Certified Public Accountant (CPA). 

 

Generally, the accountant in Sarasota has a bachelor's degree in accounting; whereas CPA is a designation that is received after finishing the particular work and education requirements bypassing the multiple exams. 

 

Let us discuss the primary differences between the two categories that will provide you a better understanding of what would be the best fit according to your tax situation.

 

What Services Does an Accountant Provide? 

 

Accountant jobs take account of recording business transactions as well as the preparation of financial statements. The main part of accountant duties is bookkeeping. They usually categorize transactions and put them into a company’s records. After collecting all the records, they modify the financial statements. 

 

Examples of financial records are the income statement, cash flow statement, and balance sheet. Most business leaders do not have enough knowledge of how to study these statements. Here the Accountants come into play!

 

They go through the intricacies of financial statements and assist entrepreneurs as well as their managers to understand these in an easy way. This in order to help them to make better and profitable judgments for business. 

 

 

What Services does a CPA provide? 

 

Certified Public Accountants have an extra level of expertise and authenticity. They are recognized as a trustworthy business enterprise that helps individuals, and other organizations in planning and reaching their financial goals. However, they need to carry out their license by finishing the 40 hours of Continuing Professional Education (CPE).

 

It is essential for CPAs to ensure the ethics which means taking the decision regarding the account and finance in line with the code of morals that are integrity, objectivity, confidentiality, and many more.

 

 

Some of the duties of CPA are given below:

 

 

1.    Managing the accounts that are payable and receivable

 

2.    Preparation and generating of reports for government audits and tax purposes

 

3.    Conduct the internal audits to make sure that everything is alright in reporting

 

4.    Creating the budgets of the business

 

5.    Maintaining a company’s accounting policies and procedures such as reporting, bookkeeping methods, and monitoring

 

6.    Providing consulting services on benefits, assets, compensation, and spending of company money

 

7.    Keep business owners in the loop on changes in the finance industry as well as, government regulations. The CPA always makes sure that the company updates policies or procedures to be implemented in accordance with new rules. 

 

8.    Giving the financial statements to the business’s management or directors.

 

 

All CPAs are accountants but all accountants can not be considered as CPAs. In general, the CPA can perform all the tasks that an accountant does. Moreover, CPA can also provide the services of income tax preparation in Sarasota for your business.

 

Before hiring an accountant or CPA in Sarasota, make sure to review your tax conditions before making any final decision. An accountant that does not have a CPA practicing license cannot represent you for the IRS audits. Before making any final decision, confirm their work, educational qualifications, and experience in the industry.

 

Hope you understand the complete difference and can now able to make the right decision for your business.