Not all financial professionals are the same.

Maybe you need help organizing finances, or, you’re interested in knowing how you compare to others in the industry. Regardless, the type of professional you visit matters.

That’s because there are distinct differences between CPAs and accountants. From education levels to fiduciary responsibilities, regulations, and ethics; not all financial professionals are the same.

We’ve outlined the 4 fundamental differences between accountants and CPA’s so you know exactly who to contact.

1. Education Levels

When it comes to education, there are clear differences between CPAs and accountants. Accountants tend to have more relaxed requirements including (but not limited to) certifications, diplomas, degrees, or on-the-job training. Whereas CPA’s undergo a strict education program.

CPA’s have to meet specific state testing requirements and complete 150 hours of college courses. These college courses tend to include classes in upper-level accounting, auditing, and business.

But- that’s not all! Once CPA’s graduate they also have to earn a year of experience working under a supervisor in the field. Then, pass a comprehensive test of business, tax, and auditing/ general accounting.

Once complete and set in their careers, CPA’s are also required to take continuing education classes to keep them up-to-date on all the latest trends.

2. Fiduciary Responsibility

The second clear difference between a CPA and accountant is their fiduciary responsibility. Although an accountant can be very helpful when it comes to organizing, filing, and clearing up paperwork, they do not have the capability of auditing and reviewing accounts.

This is where the help of a CPA is critical. CPA’s are able to review a company’s finances and compare them to industry standards. By doing this, they can spot any potential issues.

From here, they can also offer advice on where to improve or suggest alternative systems that make your company more efficient.

3. Taxes and Regulations

If you’re looking for someone to help with your taxes – an accountant should be your go-to person.

Accountants are highly efficient, organized, and helpful when it comes to basic tax filings.

However, CPA’s differ from accountants when it comes to taxes because they tend to do a much more in-depth study of them. This in-depth look is perfect for businesses because they will likely have more knowledge about tax codes, licenses, and breaks.

While reading through your accounts, they will be looking for any potential breaks, benefits, or errors that can cause you issues in the future. Making them a great choice for any business owner!

Another key reason why businesses should visit a CPA for their taxes is that they are allowed to represent you if the IRS is requesting an audit. This is extremely helpful as they will clearly understand the system, and be able to navigate it on your behalf.

4. Code of Ethics

The final difference between CPAs and accountants is their code of ethics. Although accountants will do their best to spot potential problems and bring it to your attention, CPA’s are bound to do this by a strict code of ethics.

Meaning, they have a legal duty to act in the best interest of the client. This is true with regard to tax services, asset management, and general business consulting. This strict code also has them acting at the highest level of industry standards, and free of any conflicts of interest – at all times.

Ultimately, knowing who to turn to for professional help can be tricky. Especially if you’re unsure of which professional would be of more use. If you’d be interested in learning more, or knowing what services would benefit you, give us a call at 407-328-5001.

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