Bookkeepers may record financial transactions in spreadsheets, reconcile records with bank statements, submit employee payrolls, create monthly reports and do many other basic financial tasks.Īccountants may ensure the accuracy of financial data, prepare organizations to pay taxes, file those taxes and create a yearly budget. The job duties of bookkeepers, accountants and CPAs each involve financial data but differ in complexity and range of responsibilities. ![]() ![]() A CPA certification requires passing the uniform certified public accountant exam, which has test sections such as auditing and attestation, business environment and concepts, financial accounting and reporting and regulation. CPAs gain certification to provide certain auditing and taxation services, along with an accredited standing. By customizing further education and certification to a role or field, you may make yourself more capable and a more-appealing candidate for positions in that field.Įmployers often request a minimum of a bachelor’s degree when posting accounting positions. This flexibility allows you to gain experience in the field before earning a specialized degree or completing a certification exam. Managerial Accounting: 6 Differences Certificationīookkeepers typically don't need any accounting certification. CPAs must further demonstrate their knowledge by passing a CPA examination. They may earn a degree in accounting or a related field that gives them knowledge about financial statements, budgeting, money management, taxes and financial advising. Bookkeepers may not need a college degree to perform the essential functions of their position.Īccountants and CPAs often have formal accounting education and training that prepares them to handle more complex financial tasks. They may learn about specific types of bookkeeping software, payroll systems, data analysis software and POS systems. Here are areas in which the jobs of bookkeepers, accountants and CPAs commonly differ: Trainingīookkeepers may not have formal accounting training, but they may have training relating to money management, data entry, payroll and finance. Related: What Are the Functions of Accounting?īookkeepers versus accountants versus CPAs A CPA’s potential clientele includes businesses, non-profit organizations, government agencies and individuals. They may conduct audits of entire organizations, represent organizations during interactions with the IRS, file tax returns and advise on budgeting. They have accredited expertise within the accounting field and can provide valuable insight into taxes, government financial regulations and auditing. Related: 9 Types of Accounting and 5 Important Accountant Careers What is a CPA?Ī certified public accountant (CPA) is an accountant who passes an exam and earns a professional certification. They also use accounting software and may work for a variety of businesses or have their own firm, serving independent clients and businesses. For example, an accountant may create a cash flow statement and file an income tax return for the organization that employs them, among various other responsibilities. They may complete bookkeeping tasks, but also perform tasks such as developing budgets, filing taxes, providing tax advice, preparing financial statements and ensuring businesses are following all financial guidelines and regulations. What is an accountant?Īn accountant is someone who performs essential tasks for businesses relating to their finances. They often use software systems to analyze and organize data and can work independently or in a team with accountants. For instance, a bookkeeper may write the number of all customer transactions and the items they purchased within a daily record, also known as a ledger. Some types of data bookkeepers commonly record and maintain may relate to invoices, loans, payroll, customer transactions and supplier purchases. What is a bookkeeper?Ī bookkeeper is an administrative professional who records and maintains financial data for a business. ![]() In this article, we explain what bookkeepers, accountants and CPAs are, provide areas in which these positions commonly differ and list some tips for choosing the right role to pursue. Understanding the differences between these positions may help you decide which is the right fit for your skills, experience, abilities and interests. They perform various tasks related to a business's finances, helping them track important financial data and prepare reports. ![]() Bookkeepers, accountants and CPAs are all essential members of many organizations' financial teams.
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