What’s the Difference | CPA vs. Accountant
CPAs and Accountants: What’s the Difference?
Choosing between a CPA vs accountant typically comes down to credentials. For example, an accountant performs accounting-related services, such as bookkeeping and budgeting, and may hold a bachelor’s degree. Certified Public Accountants have a degree plus a state license, allowing them to complete complex financial tasks.
The CPA’s mastery filters into some crucial areas, such as:
- Legal and financial regulations
- Financial accounting and reporting
- The business environment
Are you looking for someone to manage your business’s finances? Here’s how CPAs could save you time and money, help you avoid mistakes, and streamline your decision-making.
Understanding the Role of a Small Business CPA
CPAs like Numerico’s team are experienced accounting professionals. They have an in-depth knowledge of tax laws and regulations at the state and federal levels. For instance, your preferred CPA’s responsibilities may span the following disciplines:
- Financial consulting and management
- Financial representation, mergers, and acquisitions
Up-and-coming businesses will often use CPAs to cut unnecessary costs, avoid IRS penalties and tax mistakes, and minimize their brand’s taxable income. They’ll also seek the CPA’s professional and financial advice on how to save money or pursue financial goals.
A small business CPA is an excellent resource for expert tax knowledge and planning. They can help franchisers navigate regulations to successfully expand. They’ll also analyze cash flow and strategize growth.
The Role of an Accountant in Small Business
Professional accountants utilize tax strategies, bookkeeping, and business planning to maximize profits, plan for the future, and minimize tax liabilities. An accountant’s responsibilities may include aspects such as:
- Financial documentation
- Financial advice
These personal accounting services can help your business do the following:
- Improve finances: The accountant will handle billing, supply issues, and invoices while looking for ways to improve your processes and maximize profits.
- Prepare tax returns: Accountants prepare returns quickly without mistakes. They could maximize your deductions and minimize your taxable income.
A typical small business accountant also analyzes a company’s past and present financial situation for stabilization and growth. For example, they’ll help construction companies avoid inaccurate overhead allocation or cutoff errors.
CPA vs. Accountant | Key Differences and Similarities
An accountant and CPA for small business can both offer the following services:
- Tax returns
- Present financial statements
- Ensure the company’s financial policies and procedures are legal
- Financial consultation
- Internal audits
However, the key differences between CPAs and accountants are as follows:
- Licensure: CPAs have a license that allows them to provide attestation services, such as auditing.
- Education: CPAs take continuing education classes throughout their careers.
- Representation: CPAs can represent their clients before the IRS.
- Tax returns: CPAs can sign tax returns.
- Cost: CPAs cost more than accountants.
A company should choose a CPA over an accountant if they need audited financial statements. Accountants can prepare financial statements, but only a CPA can review and audit them.
How to Choose the Right Financial Professional for Your Business
The main considerations regarding a CPA vs accountant are your budget, tax burden, and niche. Who can perform your accounting services, and how much can you pay them? Maybe your taxes are complicated, or your company is newly established.
Once you know what you want, you can find the right financial adviser as follows:
- Find candidates: Check the American Institute of Certified Public Accountants database for CPAs. Ask friends or other business owners for recommendations.
- Research candidates: Check your candidates’ websites and reviews.
You can then schedule interviews to get to know your candidates better. Ask questions such as:
- How can you benefit my business?
- What are your qualifications?
- How can I utilize your services?
Numerico | Certified Public Accountant
When it comes to CPA vs accountant options, choosing the right financial professional is essential for your business’s financial health. CPAs are excellent for a new business that’s growing or one that has complicated taxes and requires audited financial statements. Accountants can help manage your business administration side of things but can’t go much beyond this.
The certified public accountant at Numerico provide customized small business accounting services. Taxes, bookkeeping, financial planning, new business formation, and consultation services are all on offer, with accounting services across a range of industries. Contact us at (734) 278-8030 today to learn more!