Even
to this day, many people often mistook that a bookkeeper, an accountant, and a
certified public accountant (Bay Village cpa) are one and the same. They might have one
thing in common, though – all three can provide accounting services to anyone.
Only a certified public accountant is licensed.
In
most countries, a certified public accountant is required to have a bachelor’s
degree in business administration, finance or accounting. To add weight to
their profession, they are also required to complete 150 hours of education and
one year of related accounting experience.
Services
Typically,
our certified public accountant performs in related assurance services. They
can attest to their work’s authenticity in financial and audit services. In
addition, they are required to adhere to the applicable and generally accepted
principles of accounting.
As
licensed professionals, they can be financial analysts, controllers, finance
officers, finance managers, and even as chief executive officers. They are also
famous for their roles in income tax preparations.
Because
of their extensive education, they are equally at home as auditors,
bookkeepers, forensic accountants, and in related field in the information
technology.
Added education
Through
all the professions, certified accountant are required to maintain their
licenses. Those that had been awarded their CP titles but have lapsed in the
fulfillment of the required continuing professional education are considered
“inactive”.
Bay Village cpa are legally able to provide public attestation opinion on financial statements
in many parts of the U.S. Some states have varied interpretation with regards
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
In
another context, a bookkeeper is some one who works for a company either as employees
or a contractor doing the financial books. Bookkeepers these days use
accounting software like QuickBooks for their work.
However,
a bookkeeper is responsible for accurately recording transactions including
accounts receivable, accounts payable, inventory and sometimes, payroll. They
give reports on a monthly, quarterly and annual basis for their work.
Typically, they don’t analyze reports nor give tax advice.
Accountants
Accountants
are a level up from bookkeepers. They usually don’t perform bookkeeping
functions (although they can). Typically, however, they prepare financial
statements in detail and do audits of the books of public companies. They may also
prepare reports for tax purposes.
They
are classified by the IRS as “un-enrolled preparer”. This means they have no
standing with the IRS in matters of signing tax returns or even representing
clients during tax audits and other related matters with the IRS.
Code of ethics
Among
certified public accountants, those that do not maintain their independence and
perform both consulting and auditing services at the same time are considered
professionals who broke their professional code of ethics.
A
true-blue certified public accountant (CPA) is duty-bound to follow those codes.
They can be charge for illegal and unethical accounting practices if found
guilty.
