CPA versus Accountant versus Bookkeeper: The Key Differences

Choosing the right professional to handle your business finances is an important decision. But with all the different titles and credentials out there, it can be hard to know where to start. Do you need a Certified Public Accountant, a bookkeeper, or an accountant?

The truth is, it depends on your specific needs and situation. In this article, we’ll break down the key differences between CPAs, bookkeepers, and accountants, and help you decide which is the right professional for your business.

CPAs

A Certified Public Accountant is a licensed accounting professional who has passed the Uniform CPA Examination. To become qualified, candidates must have a bachelor’s degree in accounting, complete 150 credit hours of coursework, and pass the exam. In addition, they must meet their state’s requirements for licensure, which often include passing an ethics exam. CPAs are the most qualified professionals to handle your business finances. They have the highest level of education and training, and are held to the strictest ethical standards. 

What Services do CPAs provide?

They provide a wide range of services, including tax preparation, auditing, financial planning, and consulting. They can also provide attest services, which is when a CPA provides assurance that financial statements are accurate and reliable. Most work for accounting firms, but some work for businesses in industries such as banking, healthcare, and manufacturing. They can also work for themselves as independent consultants. 

Accountants

Accountants can be either certified or non-certified. A certified accountant is similar to a CPA. Non-certified accountants may have a degree in accounting or a related field, but they have not completed the requirements to become a CPA. While non-certified accountants can provide many of the same services as CPAs, they are not held to the same standards and may not have the same level of education or training. 

What Services do Accountants provide?

Accountants can provide many of the same services as CPAs, including tax preparation, auditing, financial planning, and consulting. However, because they are not held to the same standards as CPAs, they may not provide the same level of service.

Bookkeepers

A bookkeeper is a professional who manages the financial records of a business. They track the money coming in and going out of a business, and prepare financial statements and reports. Most bookkeepers have at least some college education, and many have completed formal bookkeeping training programs. Bookkeepers typically do not provide tax or advisory services. However, some bookkeepers may have additional training or certification in areas such as QuickBooks or payroll.

What Services do Bookkeepers provide?

Bookkeepers typically provide services such as tracking financial transactions, preparing financial statements, and keeping records of all money coming in and going out of a business. They may also have additional training or certification in areas such as QuickBooks or payroll.

How Do I Know Which Financial Professional is the Best for My Business?

The best way to decide which type of professional is right for your business is to assess your needs and budget. If you have a complex tax situation or need help with financial planning, you will likely need the services of a CPA. If you need someone to manage your day-to-day finances, a bookkeeper may be a better option—and if you need someone to prepare your tax return, an accountant may be the best choice.

Closing Statement

Hire a firm that has a wide range of skill sets and experience. We offer personalized services so that we can take care of the financial wellbeing of your business as a whole. We have expert CPAs, bookkeepers and accountants on our team. Contact us to schedule an appointment or speak to one of our friendly staff today.