Within the accounting industry, there are a variety of career paths that a person can take. Each path has different education, job responsibilities, requirements, and training. Those who have an interest in an accounting career, have to decide between two different paths, i.e. Either to become a regular accountant or to be a CPA.
Both account and a CPA have their importance in the field of finance. No matter how big or small, every business needs to stay on top of its finances for which they need them at different stages. The role of a certified public accountant and an accountant is to assist the companies and individuals with their finances. Many businesses hire professional CPA firms in Chandler to help them stay on track and to update them regarding the financial state of their investments.
Many of us always have confusion between an accountant and a CPA. Some people think that they both work differently while others believe that they work similarly. But having a clear picture about both helps to decide that either one should hire an accountant or should consult a CPA. Let's have a look at the difference between both of them.
What is an accountant?
An accountant is a person who records and reports financial transactions and performs tasks like taking care of tax-related matters, bookkeeping and handling the responsibilities of general accounting. Such experts help to have a bigger picture of the financial situation of the business by analyzing its records, financial reports, budgets as well as tax returns.
These experts perform a variety of tax such as completing the business annual audits, analyzing the variances in the income statement, documenting the financial transactions, improving the accounting systems, reconciling the credit and bank accounts, and providing financial advice. Along with this, these experts also help by assisting the management with the preparation of the budget and overseeing the tax preparation for meeting the federal regulations.
What is a CPA?
A CPA is a certified public accountant, who assists businesses with expenses management and investments and also helps them with financial planning. A CPA is also an accountant with a state license to practice. But these experts know how to perform more advanced auditing as well as taxation services than an accountant who is without a license.
CPAs are professional that can work with a variety of small and large businesses. These experts also work with individual clientele, and for government, profit, and nonprofit organizations.
The role of an accountant is just to prepare three main kinds of financial statements that include reviewed, audited, and compiled. But a CPA is a certified professional who knows how to prepare an audited financial statement. Such an expert can also help to prepare a reviewed financial statement. CPAs are the experts who develop a skill set that builds on accounting skills and also expands their opportunities.
These experts can help a business in accounting and business concepts, communication, project management, research, and analytics. Many businesses hire accountants CPA in Chandler to help them guide the best. These experts don’t order them or take their decisions but use their experience and knowledge to guide them. Their guidance further helps the businesses to achieve their objectives.