Difference Between CPA and Accountant
CPA vs Accountant
CPA or Certified Public Accountant and Accountant perform almost the same duties. But the fact is that all accountants cannot be Certified Public Accounts whereas all CPA’s are accountants.
An accountant is a person who looks after financial records. An accountant would have good knowledge about owner’s equity, cash flow, chart of accounts and balance sheet and how these are going to affect the business.
An accountant is responsible for the accounting works of an individual or a business firm. It is the accountant’s responsibility to issue financial reports. Accountants need not be certified professionals.
On the other hand, CPA is a professional who is regulated by the state. An accountant can become a CPA only if he passes certain tests conducted by the respective Institutes of a country. Though the requirements to become a certified Public Accountant varies from one state to another, the basic thing is that one has top undergo rigorous tests to qualify to become a certified profession.
When comparing the works of both the professions, an accountant cannot do the work that a Certified Public Accountant can do.
An accountant cannot do the same work as a Certified Public Accountant whereas a CPA can do all work of the accountant. Unlike the Accountant, the Certified Public Accountant has a higher position in the financial and business circles. It is the Certified Public Accounts who are capable of advising on the financial aspects of a company. The CPA are trusted more than an accountant in financial matters. Even if an accountant’s views are valued, the last word is always from a Certified Public Accountant.
More than passing the test, the CPAs have to flow a strict code of ethics. Every two-year, the CPAs should have to complete 80 hours of professional education to keep up the new trends in accounting.
Summary
1. All accountants cannot be Certified Public Accounts whereas all CPA’s are accountants.
2. An accountant cannot do the work that a Certified Public Accountant can do.
3. It is the Certified Public Accounts who are capable of advising on the financial aspects of a company.
4. The CPA are trusted more than an accountant in financial matters.
5. Even if an accountant’s views are valued, the last word is always from a Certified Public Accountant.
6. CPA is a professional who is regulated by the state.
7. It is the Certified Public Accounts who are capable of advising on the financial aspects of a company more than an accountant.
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The above article is misleading on several points. The primary difference between a Certified Public Accountant (CPA) and an accountant is that a CPA is certified in public accounting. A CMA (certified Managerial Accountant) is certified, but not in public accounting. The difference between a non-CPA and a CPA, both of whom practice public accounting is that one is certified and the other is not.
An accountant who is not a CPA can do all the work that a CPA can except audits and reviews. Audits and reviews are a very small part of what most CPA firms do. Some CPA firms perform no audits or reviews.
Both non-certified accountants and CPAs may be capable of advising on the financial aspects of a company, depending on the abilities and training of the individual.
CPAs may or may not be more trusted than their non-certified counterparts. Trust is based, at least in part on reputation. That the “last word is always from a Certified Public Accountant” is mere hype. It might be true that the real difference between accountants and CPAs is that CPAs have bigger egos.