Contrary to what you may currently believe or may have heard, the words "bookkeeper," "tax preparer," "accountant," and "CPA" are not synonymous. There really is a difference between the duty and expertise level required for each job. Therefore, it's important streamyx combo free any business looking to hire the right financial help be clear on the work stupid streamyx need done; it's the best way to attract the right job candidates. So, with that said, let's clarify the differences between bookkeepers, tax preparers, accountants, and CPAs:
Bookkeeper - This is a person responsible for recording business transactions. In small companies, one person may complete this task. However, larger companies may have more than one person handling these duties. For instance, there may be a separate bookkeeper for payroll, winpoet receivable, accounts payable, etc. The bookkeeper completes his / her tasks based on a previously set-up bookkeeping system.
Accountant - Though any able accountant should be highly skilled at bookkeeping, the primary role of streamyx usb accountant is not to record transactions. Instead, accountants are often responsible for creating the bookkeeping tm net internet on which the company operates; that system should be based on what's most feasible and advantageous for the company. Accountants are also responsible for supervising the work that is completed by bookkeepers and are charged with generating and interpreting financial statements. NOTE: The tasks just described are common for most public financial accountants. However, in addition to financial accountants, there are multiple specialties within the accounting field. Therefore, if your company operates in a specialized industry, a specialized accountant may be in order.
Certified Public Accountant (CPA) - As the name implies, a CPA is an accountant. However, a CPA has expertise beyond a non-certified public accountant. To earn the prestigious CPA title, an accountant must pass multiple rigorous exams from the American Institute of Certified Public Accountants and possibly obtain certification / licensure from the state in which they operate. Therefore, the quality and expanse of a CPA's knowledge should be significantly greater than an accountant. In most cases, CPAs who are employees of a company work in a supervisory capacity with bookkeepers and accountants being their direct reports. Whether working as an employee or a contractor, CPAs also may audit accounting work and act as a consultant.
Tax Preparer - Just like the title indicates, tax preparers do just that; they prepare taxes. setting simply means that the person has been educated in how to put the appropriate tax forms together for various tax scenarios. While this is a true skill, the expertise of the tax preparer often ends with preparation; in most cases, unless the tax preparer is otherwise certified or educated in the specialty, they are not familiar with the bookkeeping and accounting actions related to taxes and therefore, not well-versed enough to provide boost streamyx tax, accounting, or bookkeeping advice.
Do you now have a better understanding of the difference between the job titles? Hopefully so because when you're attempting to hire an employee to handle your business' finances, it's important to ask for what you want. For instance, it would not be a good idea to hire a "bookkeeper" if what you really need is someone to manage the company's monthly, quarterly, and annual tax responsibilities. Hire an accountant. If you have bookkeeping and accounting staff but want someone to double-check your company's financial work, hire a CPA.
To insure that you hire the right financial help every time, be mindful about the professional title you use mobile broadband comparison you write a job posting or contact a staffing firm. That will set the tone for who is initially attracted or recommended for your company. However, along with the job title, pay special attention to the tasks listed in your job description / hire request. That will ultimately dictate the response you receive and whether you'll have the candidate pool you desire for the job you need done.
Mauricio Navarro is managing partner at Accounting Staffing Group LLC - a leading accounting staffing company providing accountants, finance & accounting staff to companies and governments worldwide. We provide financial staffing & accountants on a temporary, project or permanent basis to clients in various industry sectors.
