The difference between a CPA and a regular accountant?

Understanding the differences between a CPA and a regular accountant can help you make better financial decisions for your business. Both professionals play important roles, but their qualifications and services can vary.

What is a regular accountant?

A regular accountant typically has a degree in accounting or a related field. They perform essential financial tasks such as bookkeeping services, preparing financial statements, and handling payroll. They can also help with tax preparation and basic financial advice. However, they do not have the same level of certification and training as a CPA.

What is a CPA?

A CPA, or Certified Public Accountant Calgary, is a licensed professional who has passed a rigorous exam and met specific education and experience requirements. CPAs must also complete continuing education to maintain their license. This certification demonstrates a higher level of expertise and knowledge in accounting.

Key differences between a CPA and a regular accountant

• Regular accountant: Typically has a degree in accounting but no specific certification.
• CPA: Has passed the CPA exam, met education and experience requirements, and holds a state license.

• Regular accountant: Handles general accounting tasks like bookkeeping, financial statements, and payroll.
• CPA: Provides advanced services such as auditing, tax planning, and financial consulting. They can also represent clients in front of the IRS.

• Regular accountant: Cannot perform certain functions that require a CPA license.
• CPA: Legally authorized to perform audits, review financial statements, and provide official reports for regulatory agencies.

• Regular accountant: May not be required to pursue ongoing education.
• CPA: Must complete continuing education to stay updated with changing laws and practices.

• Regular accountant: Trustworthy for basic financial tasks but may lack the advanced expertise of a CPA.
• CPA: Often viewed as more credible due to rigorous certification and adherence to high professional standards.

When to hire a CPA versus a regular accountant

• You need help with basic bookkeeping and payroll.
• You need assistance with preparing financial statements.
• You want help with routine tax preparation.

• You need advanced tax planning and advice.
• Your business requires auditing or financial reviews.
• You need representation before the IRS.
• You seek strategic financial consulting and long-term planning.

Conclusion

Both CPAs and regular accountants offer valuable services, but their qualifications and expertise differ. Regular accountants are great for everyday financial tasks, while CPAs provide advanced services and strategic advice. Knowing the difference can help you choose the right professional for your business needs.