{"id":22874,"date":"2023-04-03T10:21:41","date_gmt":"2023-04-03T10:21:41","guid":{"rendered":"https:\/\/envoice.eu\/?p=22874"},"modified":"2024-01-31T11:29:37","modified_gmt":"2024-01-31T11:29:37","slug":"what-can-a-cpa-do-that-an-accountant-cant","status":"publish","type":"post","link":"https:\/\/envoice.eu\/en\/blog\/what-can-a-cpa-do-that-an-accountant-cant\/","title":{"rendered":"What Can A CPA Do That An Accountant Can&#8217;t"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">We all know accountants are important. They help us keep track of our financial transactions, prepare our taxes, and ensure we stay within the law. But what do CPAs do?\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Here is a brief summary of what a CPA is qualified to do that an accountant can\u2019t.<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Represent your company in front of the IRS<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prepare audited financial statements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Conduct external audits for public companies<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><span style=\"font-weight: 400;\">Main Differences Between a Certified Public Accountant and an Accountant<\/span><\/h2>\n<figure id=\"attachment_22878\" aria-describedby=\"caption-attachment-22878\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-22878 size-full\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-1.jpg\" alt=\"Two Women Doing Their Paperwork \" width=\"800\" height=\"533\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-1.jpg 800w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-1-300x200.jpg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-1-768x512.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-22878\" class=\"wp-caption-text\">Source: Pexels<\/figcaption><\/figure>\n<h3><span style=\"font-weight: 400;\">Licensing<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One of the most significant differences is that only CPAs are licensed. To earn their <\/span><span style=\"font-weight: 400;\">CPA license<\/span><span style=\"font-weight: 400;\"> and certification, candidates must meet the education requirements (varies by state) and pass a uniform CPA examination.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, they must complete a year of <\/span><a href=\"https:\/\/envoice.eu\/en\/blog\/how-to-get-accounting-experience-6-clever-ways\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">professional experience<\/span><\/a><span style=\"font-weight: 400;\"> before they can sit for the CPA exam. The Uniform CPA Exam consists of four sections: [1]<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Auditing and Attestation (AUD)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business Environment and Concepts (BEC)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial Accounting and Reporting (FAR), and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Regulation (REG)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The educational requirements for CPAs are more rigorous than for accountants. To become a CPA, you must have<\/span><i><span style=\"font-weight: 400;\"> at least 150 semester hours of bachelor\u2019s degree education.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">This includes 24 hours in <\/span><a href=\"https:\/\/envoice.eu\/en\/blog\/is-accounting-a-hard-major\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">accounting<\/span><\/a><span style=\"font-weight: 400;\">, which may cover business law and taxation. These courses are usually taken during your first two years of a bachelor\u2019s degree, though some states allow you to take them any time after your freshman year.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Continuing Education<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Accountants are required to complete continuing education units (CEUs) every three years, but CPAs must complete them every year. This ensures that CPAs are always up-to-date on the latest accounting and tax laws changes. They must also pass a rigorous exam every five years to maintain their credential.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">IRS Representation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you find yourself in trouble with the IRS, only a CPA can represent you before the agency. A CPA has more experience and knowledge of tax codes than an accountant. In fact, accountants cannot represent taxpayers before the IRS under any circumstances.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, a CPA can work out agreements with the IRS for financing and <\/span><span style=\"font-weight: 400;\">preparing financial statements<\/span><span style=\"font-weight: 400;\"> on your behalf. They can also help to negotiate a settlement if you owe back taxes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, a CPA can assist with audits, appeals, and tax collection issues. If you are facing any kind of tax troubles, it is advisable to consult with a CPA to see how they can help you resolve the issue. [2]<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Code of Ethics\u00a0<\/span><\/h3>\n<figure id=\"attachment_22884\" aria-describedby=\"caption-attachment-22884\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-22884 size-full\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-2.jpg\" alt=\"Two Women Holding Pen \" width=\"800\" height=\"533\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-2.jpg 800w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-2-300x200.jpg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-2-768x512.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-22884\" class=\"wp-caption-text\">Source: Pexels<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">All CPAs must adhere to a strict code of ethics set forth by the American Institute of Certified Public Accountants (AICPA). This code of ethics includes integrity, objectivity, confidentiality, and professional competence. When you hire a CPA, you can rest assured that they will always act in your best interests and maintain the highest standards of ethical behavior.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The AICPA\u2019s Code of Professional Conduct is available online and outlines the principles that all CPAs must follow. It also explains what constitutes professional misconduct and how to file a complaint.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Services Offered<\/span><\/h3>\n<p><b>A licensed CPA and an accountant are both accounting professionals.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">While both accountants and CPAs can provide you with <\/span><b>tax preparation services<\/b><span style=\"font-weight: 400;\">, a CPA is more likely to have an in-depth knowledge of tax laws and principles due to their rigorous studies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, while many accountants will prepare your taxes for you, only certified public accountants are required by law to sign off on your return before sending it off to the IRS. This makes them more qualified to handle complicated <\/span><span style=\"font-weight: 400;\">tax returns<\/span><span style=\"font-weight: 400;\"> or returns that involve multiple entities or tax jurisdictions.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">What is a CPA qualified to do that an accountant can\u2019t?<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Represent your company in front of the IRS<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prepare audited financial statements <\/span><span style=\"font-weight: 400;\">and file a report with the Securities and Exchange Commission<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Conduct external audits for public companies<\/span><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">CPAs also have greater expertise in areas such as<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">business financial planning<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">auditing and accounting for non-profit organizations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">tax compliance consulting services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">forensic accounting services (for example, fraud investigations)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">internal control assessments (for example, internal audit responses), and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ethics reviews (for example, whistleblower reports).<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><span style=\"font-weight: 400;\">How To Determine Whether You Need a CPA or an Accountant<\/span><\/h2>\n<figure id=\"attachment_22880\" aria-describedby=\"caption-attachment-22880\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-22880 size-full\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-3.jpg\" alt=\"three people in the office\" width=\"800\" height=\"533\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-3.jpg 800w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-3-300x200.jpg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-3-768x512.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-22880\" class=\"wp-caption-text\">Source: Pexels<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">CPAs are usually more expensive than accountants, but they can help manage your finances and offer valuable advice on saving money. Accountants, on the other hand, are less costly than CPAs, but they don&#8217;t always have the expertise that CPAs have.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So how do you determine whether your business needs a certified public accountant or an accountant?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are some questions to ask yourself before you make the decision:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">How complicated are my company\u2019s taxes?<\/span><\/i><span style=\"font-weight: 400;\"> CPAs know how to handle complex tax laws and can help you save money by finding loopholes and taking advantage of them.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Do I need someone who specializes in business?<\/span><\/i><span style=\"font-weight: 400;\"> If so, consider hiring a CPA who undergoes training to handle big and small business matters such as accounts payable, accounts receivable, payroll, and other financial documents. CPAs are also trained to think about their clients&#8217; finances holistically, while not all accountants are.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Do I need help managing my money? <\/span><\/i><span style=\"font-weight: 400;\">CPAs offer financial management services like budgeting advice, accounting support, preparing a detailed <\/span><a href=\"https:\/\/envoice.eu\/en\/blog\/how-to-create-a-perfect-bookkeeping-process-flow\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">accounting process flow<\/span><\/a><span style=\"font-weight: 400;\"> and audited financial statements, whereas accountants don&#8217;t.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">How often would I need advice\/reports?<\/span><\/i><span style=\"font-weight: 400;\"> If you want someone to look at your finances once a year and provide advice on how to improve them, then an accountant would be the right choice. If you need help or someone to perform mandatory audits every month or week, hire a CPA who can work with you in real-time.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><span style=\"font-weight: 400;\">Salary Difference Between A CPA and an Accountant<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to Payscale, the average CPA salary is $73,000 annually, while the average accountant&#8217;s salary is $55,000. This means that CPAs earn an average of $18,000 per year more than accountants. Qualified CPAs often have access to higher-paying positions and can command a premium for their services. [3]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, some CPAs work for large companies, while others work as independent contractors and can charge more for their services because they have fewer overhead costs.<\/span><\/p>\n<h2 style=\"text-align: center;\"><span style=\"font-weight: 400;\">Which Has a Higher Demand Between a CPA and an Accountant<\/span><\/h2>\n<figure id=\"attachment_22882\" aria-describedby=\"caption-attachment-22882\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-22882 size-full\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-4.jpg\" alt=\"man sitting while talking in front of another worker\" width=\"800\" height=\"533\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-4.jpg 800w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-4-300x200.jpg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/04\/what-can-a-cpa-do-that-an-accountant-cant-4-768x512.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-22882\" class=\"wp-caption-text\">Source: Pexels<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The demand for CPAs has been rising steadily since 2010, according to the Bureau of Labor Statistics (BLS).<\/span><\/p>\n<p><b>The BLS estimates that there will be a 17% increase in jobs for CPAs between 2016 and 2026.<\/b><span style=\"font-weight: 400;\"> In comparison, the BLS estimates that there will be only a 3% increase in jobs for accountants during the same period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This number is expected to grow even further as technology advances and businesses become more dependent on financial data to make important business decisions.<\/span><\/p>\n<h2 style=\"text-align: center;\"><span style=\"font-weight: 400;\">Takeaway<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before you make your decision, consider exactly what you need from an accounting professional. While CPAs can perform any accounting-related job, an accountant will often be more than qualified to enter financial data, <\/span><span style=\"font-weight: 400;\">recording financial transactions,<\/span><span style=\"font-weight: 400;\"> and complete basic reports. But if you need someone with specialized tax skills who can offer big-picture financial advice, you may prefer to hire a CPA.<\/span><\/p>\n<p><b><i>Contact us today if you&#8217;re looking for a way to automate time-consuming accounting tasks! We would be happy to discuss our services and how we can help you meet your needs.<\/i><\/b><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Sources:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">1 &#8211; <\/span><a href=\"https:\/\/www.aicpa.org\/resources\/toolkit\/cpa-exam\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/www.aicpa.org<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">2 &#8211; <\/span><a href=\"https:\/\/www.irs.gov\/publications\/p947\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">\u00a0https:\/\/www.irs.gov<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">3 &#8211; <\/span><a href=\"https:\/\/www.payscale.com\/research\/US\/Job=Certified_Public_Accountant_(CPA)\/Salary\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/www.payscale.com<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We all know accountants are important. They help us keep track of our financial transactions, prepare our taxes, and ensure we stay within the law. But what do CPAs do?\u00a0 Here is a brief summary of what a CPA is qualified to do that an accountant can\u2019t. Represent your company in front of the IRS [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":22876,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-22874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting"],"acf":[],"_links":{"self":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/22874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/comments?post=22874"}],"version-history":[{"count":5,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/22874\/revisions"}],"predecessor-version":[{"id":24556,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/22874\/revisions\/24556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/media\/22876"}],"wp:attachment":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/media?parent=22874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/categories?post=22874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/tags?post=22874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}