Accounting Firm v/s CPA: A Complete Guide!
As a business owner, you must have heard and even worked with CPAs or an accounting firm for taxation. Generally, both are highly professional, providing financial auditing, accounting, and consultation services. Often, people need help to choose between a CPA in Centennial, Colorado, and accounting firms. This article highlights key differences between a CPA and an accounting firm. Let’s dive in!
Introduction to Certified Public Accountant
A certified public accountant, abbreviated as CPA, has sat and cleared the state licensing examination and performs different finance-related tasks. These include managing accounts, conducting audits, forecasting revenues, preparing financial reports, and promising compliance with accounting standards. It is important to note that all CPAs are professional accountants; however, all accountants are not certified public accountants.
Introduction to Accounting Firms
An accounting firm is a business entity where many accounting professionals or experts provide end-to-end accounting and financial services to their clients under one hood. Popular services offered by these accounting firms include payroll processing, auditing, bookkeeping, tax preparation, and advisory services. To start an accounting firm, you must have accounting qualifications and experience. These firms can be private and public and offer the best financial advice to make better financial decisions.
Difference Between CPA and Accounting Firms
Here is a quick difference between CPA and Accounting Firms:
|A CPA is a professional who has cleared a particular examination set by the state.
|An accounting firm is a business entity offering different financial services to its clients.
|A CPA holds a CPA license once they have passed the examination.
|An accounting firm does not hold any degree. However, they hire CPAs who have licenses.
|Some most popular services include tax preparation, auditing, financial planning, and consulting.
|Various services offered by an accounting firm include auditing, advisory services, tax planning, bookkeeping, and financial analysis.
|CPAs are great at their work as they have spent years preparing for the examination and cleared it.
|Promotes collective expertise as an accounting firm hires professionals offering excellent services.
|Have chances to work in various capacities, including corporations, independent consultants, public accounting firms, or government agencies.
|Hire professional experts who can handle everything from small business to large-scale enterprises.
Both CPAs and accounting firms work to offer great financial advice and handle related matters. As a business owner, you must hire to meet your business requirements effectively.