The Differences between CPAs & Accountants

Accountants and CPAs are two titles which are often thrown around the business world. These are the two titles which have the power to make or break your company. Any company which continues to stand strong over the years is probably able to do so thanks to a great CPA or accountant.

In order to be an accountant all you need to do is be good with numbers, know how to use bookkeeping software, and be good with analytical reasoning. Normally, these are the people who work within an accounting department and don’t necessarily have the education or the certifications in order to do the job. Additionally, these people are not forced to have certain certifications. Many accountants also have the ability to prepare taxes as long as they pass the IRS test to receive a PTIN.

A CPA (or Certified Public Accountant) stands out above all other accountants. Most CPAs fulfill the following:

• Earn an accounting degree from an accredited college or university.
• Pass all four parts of the CPA Examination, which includes: auditing and attestation, financial accounting and reporting, regulation, and business environment and concepts. (Beginning July 1, 2015, students in Colorado must earn 150 hours of education prior to sitting for the Exam.)
• Pass the Professional Ethics Exam from the American Institute of CPAs.
• Obtain 1,800 work hours (usually one year) under the direct supervision of an actively licensed CPA.

So while both CPAs and accountants are very vital to practically any business, knowing how to differentiate the two is what will help your business as it relates to knowing what your accountant is legally and not legally able to do.

Did you know there was a difference between CPAs and accountants? What did you think the difference was? We want to hear your thoughts. Please leave your comments below.

Image credit: TaxRebate.org.uk