Accounting plays a vital role in money management and budgeting, but some people get confused about the difference between an accountant and a CPA. After all, CPA stands for certified public accountant, so aren’t these the same thing? While a CPA is an accountant, there are some differences between an accountant and a CPA, including:

Education

An accountant is someone who provides accounting services and has attained a Bachelor’s degree in accounting. A CPA has at least the same level of education, but they have also received a state CPA license. Each state has its own licensing requirements for CPAs, so you’re encouraged to work locally with an accounting professional if you seek out these services. Drive financial excellence for your business - partner with a premier business CPA in Brooklyn today! https://www.gersteintaxservice.com/business-taxes-services

If you are operating a company in New York City, you might seek out a business CPA in Brooklyn to help with your company’s finances. A business CPA in Brooklyn will have a CPA certification from the state of New York and will be able to offer accounting services in accordance with state laws.

Role

Although both an accountant and a CPA offer accounting services, a CPA is usually someone who provides services critical to businesses. These services may include tax accounting and preparation as well as accounting services as they relate to business regulatory compliance.

Someone who practices accounting without a CPA designation may still offer these services as an in-house accountant at a place of business, but CPAs tend to provide more robust corporate offerings. A standard accountant cannot represent an entity in front of the Internal Revenue Service (IRS), whereas a CPA can provide this representation.

Fiduciary Requirements

A fiduciary is a financial professional who is held to the standard of working in their client’s best interests. A CPA is held to a fiduciary standard, but a regular accountant is not necessarily beholden to the same standard.

This is not to say that an accountant who does not have a CPA license is less likely to provide honest service, but it does mean that there is less of legal liability for non-CPA accountants. A CPA must comply with fiduciary requirements by law.

Read a similar article about Long Island CPA here at this page.