Are you confused by the differences between an Accountants Glasgow and a Certified Public Accountant? While they may appear to have similar qualifications and experience, there are still some important differences to consider before hiring one.
What’s the Difference?
This is one way to explain the differences between these two professionals: All CPAs are accountants, but all accountants may not be CPAs. Confused? It can be difficult to tell the difference between these two professions. CPA stands for a certified public accountant. A state license does not allow an accountant to pass this exam.
Both of them perform tax-related work as well as finance. They adhere to the Financial Accounting Standards Board’s (FASB), including the Generally Accepted Accounting Procedures (GAAP). Both set of professionals have likely received college degrees.
The term “accountant”, which is more generic, refers to someone who performs financial work in accordance with the FASB rules. CPA can only then be used by someone who has passed a state licensing exam.
What makes a CPA so unique?
These professionals are highly valued because they pass the state licensing exam. A lengthy examination that covers many areas of tax and finance is required to be licensed. A professional must be current in tax law and continue to learn every year to keep their license valid. Bookkeepers and other financial professionals are exempt from this requirement.
Why should you hire one?
A CPA is a more effective choice than an accountant in many situations. The following are the three main areas where a CPA may be a better choice than an accountant:
Taxes. They are more familiar than most finance professionals with tax law. They are also certified preparers by the IRS. This is important as certified preparers can better represent clients to IRS if necessary.
Financial Analysis. A licensed expert will be required to analyze the financial situation and perform routine financial work, such as entering records or preparing reports. They can offer advice on financial and tax issues that others are not able to.