5 Major Points of Difference Between a CPA and an Accountant

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5 Major Points of Difference Between a CPA and an
Accountant
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Job Role When comparing the job role, an
acucontants job is limited to the processing
work of keeping a track of financial records and
statements. He/ she is responsible for tracking
and recording the daily transactions of a
business. A CPAs job role is vast. Along with
keeping records of financial statements, such
professionals also involve in taxation services
and provide sound financial advice and strategies
to make a business grow.
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Licensing For a person who wants to be an
accountant, there are no specific licensing
requirements that he/ she has to meet. The person
just needs to come from an accounting and finance
background, or have sound knowledge on the
subject matter. When a person pursues a CPA
degree, he/ she needs to have a license to get
qualified and earn the Certified Public
Accountants (CPA) degree. For that, they need to
meet specific educational and exam requirements.
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Representative to The IRS An accountant in
Hermosa Beach by no means has any kind of ground
or standing to represent themselves in front of
the Internal Revenue Service (IRS). More so
because they are not adept with taxation
services. On the other hand, a CPA has the right
or power to represent a person paying taxes in
front of the IRS. This is because their job role
demands them to get adapted to tax laws,
regulations, and tax services as well.
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Governing Body An accountant does not have a
council of members to whom they have to report,
or to whom they are answerable. They report to
the top management of the company that they
serve. An accountant in Hermosa Beach does not
have a governing body. Whereas, when it comes to
a CPA, they have a governing body which we know
as the American Institute of Certified Public
Accountants. Their issues are addressed by the
AICPA as well.
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Cost of Hiring Owing to the limited roles and
responsibilities that an accountant is subjected
to, the cost of hiring them is less. That is the
reason why many companies especially startups,
choose to hire accountants. It is very obvious
considering the roles of a CPA, that hiring them
would cost significantly more than hiring an
accountant. That is why people prefer going for a
CPA degree to secure highly-paid jobs.
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