Many people are confused about the differences between Accountants and Certified Public Accountants. Dedicated professionals work in both fields, but there are some differences. Consumers should weigh the differences before selecting a tax preparer. No one wants to be in trouble with the IRS, so taxes need to be accurate.
Accountants are financial and tax professionals who perform a variety of general duties. Accountants maintain financial records, study cash flow and prepare balance sheets. On the other hand, CPA’s are required to pass a state licensing exam to earn the designation. It can be a confusing analysis. All CPA’s are accountants, but not all accountants are CPA’s. Both professionals have college degrees, but CPA’s often have a Master’s degree. Further, the CPA exam is said to be one of the most difficult professional license exams. There are four individual parts issued by state accounting associations. In addition, some states require CPA candidates to take an ethics exam. CPA’s must also complete eighty hours of continuing education every two years.
People who need Tax Preparation In Manhattan should contact Woloshen and Herman C.P.A. The firm provides personal and small business accounting services. Nearly all CPA’s are more familiar with tax laws than accountants. A big part of the licensing exam is understanding the tax code. CPA’s are able to represent individuals and businesses before the IRS, while accountants cannot. The IRS classifies accountants as “unenrolled preparers.” CPA’s are able to provide companies with more in-depth financial services than accountants. They have more experience in financial analysis and auditing. CPA’s are often called upon to perform internal audits. An audit is done to find errors in financial transactions and to make sure internal controls are being followed.
Ultimately, it is up to the consumer whether they want an accountant or CPA to handle their Tax Preparation in Manhattan. Perhaps the biggest difference between an Accountant and CPA is the salary earned. Most accountants earn around $53,000 per year. Meanwhile, CPA’s can earn over $150,000 per year. Businesses must decide whether they can afford the services and whether they need the extra assistance provided by a CPA.