An accountant and a CPA are experts in the financial realm. However, they differ in some aspects that set them apart. Can you pan out the differences between the two professionals? Don’t worry since we’ve compiled some unique features that make them distinct. Read on to get more insights about their variation.
For starters, accountants do not possess a state license that makes their operation legal. They only need a bachelor’s degree, and they are good to go. On the flip side, you need a valid license to become a CPA. As the name implies, you ought to be certified to perform all the financial duties.
CPAs undertake the Uniform exam that will assess their skills and competencies. If they pass, they will proceed to get a certification according to the state they reside in at the time. Do you know the best part about certified public accountants? You continuously learn since knowledge is dynamic, and you ought to be relevant in the industry.
Additionally, they have to uphold a code of ethics in their practice. It is the main reason why they take the certification exam anyway. CPAs who perform duties illegally without documentation risk jail term. Therefore, you will need to act according to the law and prepare accurate data.
Accountants take a shorter time than CPAs to be recognized as executives. They need 4 years of university degree so that they can start practicing. CPAs need a total of 6 years that entails the degree and 2 years of work experience. For this reason, you have to put in extra work to qualify as a certified public accountant.
You should know that some states might ask for proof of one year practice. It all depends where you live; you might have an ounce of luck. In the end, CPAs get more skills and knowledge as they can optimize arrays of accounting tools online. The software you can use utilizes high-end technology that you can reap benefits from and advance to greater heights.
We can now look at the various duties that they perform according to their expertise. An accountant works for insurance companies and the government as well. He or she analyzes financial data to check for any errors and presents the records to the client. Additionally, they ensure that the company adheres to federal law. Plus, they assist management teams to improve on their performance.
A CPA, on the other hand, prepares tax returns and files financial records. What’s more, they manage accounts payable and receivable. If you decide to go for the profession, you will advise the company on the best strategies to prosper and control all frauds. The highlight is that you can start your business or work for a profitable public accounting company.
I’m sure you are highly interested to know how much each of them earns. Well, let’s get to the salary scale so that you can decide the one to pursue. According to the Bureau of Labor Statistics, accountants who are experienced receive $91, 770 a year on average. The lowest-paid get a salary of $54,250 in a year. It might vary according to states since some of them pay a bit higher.
CPAs earn more since with 20 years of experience; you will get $152,000 per year. Those who have been working for less than a year take home $66,000 per annum. You can now see that you are bound to earn more if you get a license. Plus, you will get more benefits and bonuses. The variance in salaries is due to the work they do as aforementioned.
The growth prediction between the two specialists also differs. For instance, BLS indicates that accountants are likely to increase by 6% from 2018 to 2028. In contrast, CPAs will record a growth of 10% over the same time. On that account, you can see how CPAs are in high demand due to the need for financial services. With the right education and experience, you can represent a client before the IRS.
Many companies opt to hire them to file taxes and get vital monetary pieces of advice. I can assure you that in due time if you have CPAs qualifications, you will earn a considerable salary. Plus, you can work with many clients who direly require your exemplary expertise. You rest assured that you have job security and that you will never run out of jobs to do.