For
the most part, many people think that a bookkeeper, an accountant, and a
certified public accountant are one and the same. Anyone of the three can
provide accounting services to the public. However, a certified public
accountant, or professionally known as a North Olmsted cpa is licensed.
For
one, a certified public accountant is required to have a bachelor’s degree in business
administration, finance, or accounting in most countries in the world.
Regarding their qualifications, they are required to complete 150 hours of education
and one year of related accounting experience.
General services
A North Olmsted cpa performs related to assurance services. Typically, they can attest to the authenticity
of their work in financial audit services. They also have to keep adherence to
applicable and generally accepted principles of accounting.
As
licensed professionals, they can work as financial analysts, finance managers,
controllers, chief financial officers, even as chief executive officers. (These
CPAs do not directly give services to the public.)
CPAs
are known for their role in income tax preparations, although they can work in
areas like auditing, bookkeeping, forensic accounting, and in the information
technology.
Continuing education
Among
the many professions, certified accountants are required to maintain their
licenses. Those that had been awarded their CPA title but have lapsed in the fulfillment
of the require continuing professional education (CPE) are considered “CPA
inactive”.
In
many U.S. places, only the CPAs are legally able to provide public attestation
opinion on financial statements. Some states have varied interpretations regarding
whether a non-CPA can even use the title accountant.
In
many official functions, only CPAs, tax attorneys and Enrolled Agents are
allowed to represent a taxpayer before the IRS (internal revenue service). This
is because they have the additional credibility and expertise after having
passed certain examinations and other statutory and licensing requirements of a
state.
Bookkeepers
On
the other hand, a bookkeeper is someone who works for a company either as an
employee or a contractor to keep the financial books. These days, bookkeepers
use accounting software like QuickBooks for their work.
A
Bookkeeper is responsible for accurately recording transactions including
accounts receivable, accounts payable, inventory and (sometime) payroll. They
also provide reports on a monthly, quarterly and annual basis for their work. Usually,
they don’t analyze reports nor give tax advice.
Accountants
In
a way, accountants are a level up from bookkeepers. Usually, they don’t perform
bookkeeping functions (although they can). Typically, they prepare financial
statements in detail and do audits of the books of public companies. They may
prepare reports for tax purposes.
Accountants
are classified by the IRS as “unenrolled preparer”, meaning the have no
standing with the IRS in the matter of signing tax returns or representing
clients during tax audits and other related matters with the IRS.
Code of ethics
Certified
public accountants have their code of ethics. Those that do not maintain
independence and perform both consulting and auditing services at the same time
are considered violating their code of ethics.
A
certified public accountant (CPA) is duty-bound to follow those codes which can
be charged against them for illegal and unethical accounting practices.
