Most people often get confused between an accountant and a certified public accountant. Though every CPA is an accountant, not every accountant is a CPA. This article will briefly explain the roles and responsibilities of a Certified Public Accountant and some benefits of becoming a CPA.
Who is a Certified Public Accountant?
Certified Public Accountants are professionals who have experience in dealing with tax preparation. They are experienced professionals in auditing, forensic accounting, bookkeeping, etc. They have to follow a strict code of ethics and have a respectable position in society. Many corporates and NGOs hire CPAs to do their taxes and help them get out of tough financial situations.
The main difference between an accountant and a Certified Public Accountant is that the accountant’s work is to complete the routine work and fill out the tax returns. In comparison, the CPAs represent you during the audits, help the company make some huge tax-saving decisions, and do a complete analysis of the tax work in the company.
How to be eligible for being a Certified Public Accountant?
A candidate who has completed a bachelor’s degree in finance, accounting, or business administration and has also completed a total of 150 hours of education is eligible for the exam. The candidate should then have at least two years of experience in public accounting.
If both the criteria are met, the candidate can then appear for the Uniform CPA exam conducted by the American Institute of Certified Public Accountants (AICPA). Some people also take some professional courses in becoming a CPA, and as per their talents and experience, they prove their worth. Becoming a Certified Public Accountant will open new doors for you and give you a chance to boost your career while offering several opportunities.
What is the main difference between a Certified Public Accountant and an accountant?
Several accounting purposes require the assistance of an accountant. An accountant’s work is fairly simple such as accounting, filing tax returns, auditing, etc. There are several restrictions for an accountant, however. The work that the accountant cannot do is completed by a CPA. the work that a CPA mainly does are as follows:
1. They prepare and review the financial statements of the organization or an individual. After successfully reviewing, the CPA will file a report with the Securities and Exchange Commission (SEC).
2.All public companies must file the financial statements with the SEC.
3. They can represent their clients in front of the IRS.
Career options after becoming a Certified Public Accountant
Following are the career paths after legally becoming a CPA: –
1. They can work as financial advisors
CPAs are often appointed as financial advisors in many organizations, and some also appoint them for their work. They can assist people on various home purchase options, help start a college savings fund, plan their retirement, and start a new business. The CPA will help by guiding them and suggesting the right financial advice.
2. They can work for the government and NGOs
When working for a government organization, NOGs, or other businesses, the main post the CPAs are appointed as financial analysts and CFOs. People hire CPAs because they are more qualified and help the company organize its financial assets. CPAs perform the budgets and the auditing works.
3. They provide some specialist services
The CPAs mainly provide these services, and depending on the requirement, CPAs are hired to carry out the work. For example, they can guide MNCs by conducting various risk assessment work and executing the improvements.
Advantages of becoming a CPA
Mentioned below are a few main advantages of becoming a Certified Public Accountant: –
1. CPAs earn well compared to other accountants and the door it opens after becoming a CPA is unmatched. You get good salary packages: – though your initial salary will not be that high, once you gain experience, your salary will always be on the rise. After gaining experience, CPAs can even negotiate for higher salaries, can ask for better privileges, and more vacation time.
2. Their job is stable and secure: – once you become a CPA, you do not have to worry about job security. CPAs are always in high demand. Since their job requires a high amount of tax knowledge and critical thinking, they are always sought by employers.
3. They are well-respected in society: – becoming a CPA is not an easy job, and everyone knows it. After you become a CPA, you feel confident in explaining what you do and spikes it a curiosity among people about how they can benefit from your services. If you have an attitude of helping others financially and are quick to think on your feet, then CPA is the best profession for you.
Final thoughts
This was an overview of becoming a CPA. To know more about Certified Public Accountants, you can visit Just Call Jack.
