CPA vs Accountant/Bookkeeper
Thursday, May 6, 2010 // 1 Comment // News
A bookkeeper is a broad, basic job function in accounting usually without any formal education. By definition, it is someone who records the accounts or transactions of a business. The “books” refer to the financial records of a business whether actually kept in books or on computer software. The bookkeeper might also make bank deposits, balance accounts, handle payroll, prepare and send invoices, etc. Most business owners start out doing their own bookkeeping, but then defer to a professional accountant or CPA when it comes to taxes.
An accountant is a general term for a formally educated professional who helps maintain financial records, analyzes financial records, and/or make sure taxes are paid properly. They may or may not be certified as a public accountant (CPA). An accountant has thorough knowledge of cash flow, owner’s equity, balance sheets, chart of accounts, etc. and their effects on a business.
A CPA (Certified Public Accountant) is a professional designation that’s regulated by states. CPAs must maintain a certain amount of professionally logged hours per the state they are certified within. These logged hours help establish a measure of how reputable they can become and the levels of practice they may be offered to resolve. To become a CPA, you must pass the CPA exam. Not all accountants take the exam and not everyone who takes the exam passes.
Typically:
A bookkeeper cannot do the same work as an accountant or a CPA, BUT an accountant and a CPA can do bookkeeping.
An accountant cannot do the same work as a CPA, BUT a CPA can do accounting.
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August 16, 2010 at 3:42 PM
I read about the CPa vs Accountant, it is true, that a bookkeeper can’t do the work of Accountant. but If a book keeper do hard work to geting the proper knowledge of accounting through reading the books of accounts can do that work as professional, or he take proper education of accounting.