Major Differences between Bookkeepers, Accountants & CPA’s
Certified Public Accountants (CPAs), accountants, and bookkeepers share similar qualities. For one, they share financial responsibility for the organizations or companies that they work for, but when it comes to the tasks that they perform, they differ in different aspects.
— CPA Canada (@CPAcanada) June 27, 2017
Tasks of Accountants
An accountant has a 4-year degree from a regionally accredited college or university. This type of professional tends to get hired by companies that make more than one million dollars in sales every year. Accountants can handle the fiscal responsibilities of the businesses or organizations that they work for. Accountants work with accounting technicians or clerks who handle financial entries on a daily basis. They perform or oversee billing, review accounts payable activity, handle payroll, make general ledger entries, etc. They report to accountant managers, financial directors, or company controllers. They are always on track to know how a company is doing financially so those in charge of making decisions can be aware of how to adequately handle their business or organization in the months to come.
Tasks of Certified Public Accountants
Certified public accountants obtain a focused education in accounting. They cannot undertake this profession until they pass the CPA Certification Program. If this examination is not passed, then this type of accountant cannot lawfully perform tasks. CPAs either create their own company or work within a company, offering accounting services. Every two years, it is expected for their certification to be renewed. This professional has more of a responsibility than accountants and bookkeepers. Due to having a certification, they can perform taxes, auditing, and other financial services for nonprofit organizations, corporations, individuals, or just about any business.
Differences between CPAs and Accountants
Bookkeepers are not considered as accounting professionals, by CPAs and accountants. Even so, when a bookkeeper handles payroll or signs checks, he or she has the same liability as a CPA or accountant with equal responsibility under the CRA law. In an accounting department or organization, duties tend to be segregated to reduce misappropriation of funds, errors, fraud, and to ensure financial control under permitted accounting principles. When working for a small organization, bookkeepers might undertake tasks of several jobs that would be isolated in a corporate or accounting environment, making them have a lot of similarities with accountants and certified public accountants. Even so, as you can already conclude, all of these professionals conduct several different tasks, which is what gives them their unique edge.
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