Whether you are managing business or personal finances, knowing what financial professionals do and their qualifications is important. Like other areas, people in Atlanta often confuse CPA with the accountant in Atlanta, GA which are actually two different qualifications and responsibilities. In this article, we will explain the difference between CPAs (Certified Public Accountants) and accountants, and identify what they do uniquely and how their Atlanta financial landscape roles benefit a community.
Understanding Accountants
Accountants are professionals who record, classify, and summarize financial transactions. Their main function is to verify the accuracy of financial records and compliance with laws and regulations. You may find accountants in public accounting, corporate accounting, government, and non-profits.
Educational and Professional Requirements
Most accountants hold a bachelor’s degree in accounting or other related field. There is no certification that an individual must possess to be referred to as an accountant, and their duties can cover a broad spectrum based on experience and employer needs.
Understanding CPAs
CPAs are accountants who have passed specific state and educational licensing requirements and the challenging CPA exam. In Georgia, the state board of accountancy regulates CPA licensure through the Georgia State Board of Accountancy. Continuing education requirements for CPAs to maintain licensure.
Education & Qualification
To be a CPA, a person needs:
- Education: A bachelor’s degree and 150 semester hours of education, 30 hours more than a typical bachelor’s degree.
- Exam: Pass the CPA exam, a four-part test that includes topics on auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation.
- Experience: Work under the control of a licensed CPA for relevant work experience.
- Ethics – The majority of states, including Georgia require that you pass an ethics exam.
Key Differences
Certification and regulation: Perhaps the most significant distinction between CPAs and accountants is in the level of certification and regulation involved. A CPA requires rigorous education and experience requirements, one of the most challenging examinations a professional can take, and rigorous ethics standards. Despite their education and expertise, accountants are exempt from these extra requirements.
Scope of Work: It allows for tasks that a general accountant cannot handle, such as auditing of public companies and representation in front of the IRS. They are generally one level higher than accounting and they usually deal with more complicated financial duties, providing a better assurance about the correctness and integrity of the accounting records.
Trust and Credibility: Clients, regulators, and the public at large tend to trust CPAs more due to their stringent qualifications and adherence to professional standards. For major financial decisions, audits, and compliance problems, Atlanta businesses or individuals might prefer to do business with CPAs.
Professional Development: Continued education because CPAs must complete continuing professional education (CPE) hours for them to have their certification. That means they are up to date with the current financial laws, regulations, and best practices. Continuing education is not a requirement for accountants, although some may choose to pursue it as well.
Accountants and CPAs in Atlanta deal with the financial matters of businesses and individuals alike. By knowing the distinction, you can make an informed decision about whom to hire based on your needs. General accountants are perfectly suited to handle day-to-day, routine financial issues, but CPAs provide a higher level of expertise that is key when it comes to more complicated and regulated financial matters. From basic accounting services to advanced financial planning and auditing, the choice of professional will have a significant impact on your financial health and compliance with regulatory standards.
