Accountant,
bookkeeper and CPA are the most common words appear on your screen when you
search for bookkeeping or any other financial services. This creates a
perception in the minds of people and makes them believe that these words are
interchangeable. They wrongly believe that these three words represent one
general financial professional. However, an accountant, bookkeeper and CPA have
different roles to play. This differentiation helps you in determining whether
you should hire a bookkeeping services company in California or an accountant or a CPA.
Role of an Accountant
An
accountant analyzes and verifies financial information. Preparing financial
statements and advising executives about the impact of a financial decision on
the business is the job of an accountant. Here are the other tasks performed by
an accountant.
•
Adjusting and determining wages of
employees
•
Creating allowances for
uncollected accounts
•
Preparing balance sheets, tax
returns, cash flows, income and other statements
•
Verifying financial information
•
Preparing and analyzing
audits
•
Overseeing bookkeeper’s work.
Role of a Bookkeeper
A
bookkeeper performs financial data entry roles. He records day-to-day
transaction of a company. A bookkeeper
•
Processes payroll information
•
Records vendor bills
•
Creates sales invoice
•
Sends invoices to vendors and
statements to customers
•
Updates information in financial
software
•
Creates a trial balance by keeping
track of credits and debits
•
Ensures that employee has
submitted correct paperwork for payroll
•
Follow up on invoices
•
Balances and records subsidiaries,
ledgers and other records
Role of
a CPA
CPA
Stands For Certified Public Accountant. A CPA needs a degree in accounting and
an extensive training. There are some regulations regarding ongoing education
and experience before appearing for the Uniform Certified Public Accountant
Examination. Though rules about CPAs vary from state to state, but in general,
a CPA must have the required education and certification. Moreover, a CPA also
has to renew his certificate every two years.
As
compared to an accountant and a bookkeeper, a CPA has to take more
responsibilities and obligations. Overseeing and auditing the financial
information of the company is the primary job of a CPA. Apart from this, a CPA
also works with accountants and bookkeepers of an organization. A CPA handles
various tasks associated with auditing, tax preparation and more.
Now
it is clear that a CPA and an accountant can file a tax return for you. In case
you do not know how to file your taxes online, you should look for an experienced tax preparer in Brentwood.
