There’s always a debate going on about the difference between a CPA and an accountant. They are very different from one another. An accountant is someone with a bachelor’s degree in accounting. There are also some skillful accountants without a degree. An accountant can earn the license of a CPA if he possesses the required skills, experience, and education.
In this blog, we will be talking about the difference between CPAs and accountants in Hounslow. Let’s begin by defining their roles and then the difference between them will be evident.
What’s the role of an accountant?
When you hear the word accountant, what exactly comes into your mind? If it’s about managing Finances and dealing with accounts, then you already know what an accountant does. Apart from managing finances and dealing with accounts, an accountant can help you file taxes and manage your business. An accountant can be a great addition to your company, provided you hire the right one. Here is a pro tip: if you’re looking for someone for bookkeeping then hire someone who is specialized in bookkeeping.
What’s the role of a CPA?
Not all accountants in Hounslow can be called a CPA, but every CPA can be called an accountant. CPA stands for Chartered Public Accountant. An accountant can earn a CPA license by passing the CPA exam. It means that a CPA is someone who’s much more qualified than an accountant. But as an accountant advances to CPA, his working roles change too. A certified public accountant enjoys more privileges than an accountant. Let’s now move to some major differences between a CPA and an accountant.
CPAs have more authority than accountants in Hounslow. Hence, an accountant with a CPA license can provide attestation services for organizations but an accountant without it can not.
An accountant doesn’t need a license to be an accountant. He just needs a bachelor’s degree in accountancy to be called an accountant. While it is not the case for CPAs. An accountant needs to get a license to be called a CPA. You will have to pass the CPA exam and if you meet the education, experience, and skill criteria you will be awarded the CPA license.
It costs more to pursue a CPA license than accounting. Because a lot of effort goes into getting the CPA license, so does the money.
A CPA charges way more than an accountant because of his experience, education, and CPA license. On The other hand, an accountant charges less than a CPA.
Signing tax Returns
An accountant can file tax returns for you, but he doesn’t have the authority to sign them. A CPA has the authority to sign tax returns for you in your absence.
Representing before IRS
As I said above, a CPA enjoys more authority than an accountant. Hence, a CPA has the right to represent before the IRS. Whereas, an accountant doesn’t have the right to represent before the IRS.
Which is better?
Both CPAs and accountants in Hounslow are even good when it comes to their services. An accountant offers slightly different services than a CPA, but he’s extremely good at it. A good accountant can add value to your business and can provide you with multiple benefits. On the other hand, a CPA is someone more qualified than just an accountant and he does his work very well. Many big companies entrust their financial matters to CPAs and they give them productive results.
There are some big differences between CPAs and accountants in Hounslow. In a nutshell, all CPAs are accountants, but at a much-advanced level. An accountant can get a CPA license by passing the test, and proving his skills, education, and experience. An accountant can be beneficial for you, provided you don’t expect advanced services from him. An accountant can’t sign taxes or provide attestation services and you shouldn’t expect these services from him. You don’t pay him for this. In order to get these services, you need to hire a CPA and that costs more than an accountant. The blog is not about the comparison between the two, it’s just to make it clear to people about their services. I hope you’ve learned the difference between a CPA and an accountant.