| Contrary to what you may currently believe or | | | | Therefore, the quality and expanse of a CPA's |
| may have heard, the words "bookkeeper," "tax | | | | knowledge should be significantly greater than an |
| preparer," "accountant," and "CPA" are not | | | | accountant. In most cases, CPAs who are |
| synonymous. There really is a difference between | | | | employees of a company work in a supervisory |
| the duty and expertise level required for each job. | | | | capacity with bookkeepers and accountants being |
| Therefore, it's important that any business looking | | | | their direct reports. Whether working as an |
| to hire the right financial help be clear on the work | | | | employee or a contractor, CPAs also may audit |
| they need done; it's the best way to attract the | | | | accounting work and act as a consultant. |
| right job candidates. So, with that said, let's clarify | | | | Tax Preparer - Just like the title indicates, tax |
| the differences between bookkeepers, tax | | | | preparers do just that; they prepare taxes. |
| preparers, accountants, and CPAs: | | | | "Preparation" simply means that the person has |
| Bookkeeper - This is a person responsible for | | | | been educated in how to put the appropriate tax |
| recording business transactions. In small | | | | forms together for various tax scenarios. While |
| companies, one person may complete this task. | | | | this is a true skill, the expertise of the tax |
| However, larger companies may have more than | | | | preparer often ends with preparation; in most |
| one person handling these duties. For instance, | | | | cases, unless the tax preparer is otherwise |
| there may be a separate bookkeeper for payroll, | | | | certified or educated in the specialty, they are not |
| accounts receivable, accounts payable, etc. The | | | | familiar with the bookkeeping and accounting |
| bookkeeper completes his / her tasks based on a | | | | actions related to taxes and therefore, not |
| previously set-up bookkeeping system. | | | | well-versed enough to provide sound tax, |
| Accountant - Though any able accountant should | | | | accounting, or bookkeeping advice. |
| be highly skilled at bookkeeping, the primary role | | | | Do you now have a better understanding of the |
| of an accountant is not to record transactions. | | | | difference between the job titles? Hopefully so |
| Instead, accountants are often responsible for | | | | because when you're attempting to hire an |
| creating the bookkeeping system on which the | | | | employee to handle your business' finances, it's |
| company operates; that system should be based | | | | important to ask for what you want. For instance, |
| on what's most feasible and advantageous for the | | | | it would not be a good idea to hire a |
| company. Accountants are also responsible for | | | | "bookkeeper" if what you really need is someone |
| supervising the work that is completed by | | | | to manage the company's monthly, quarterly, and |
| bookkeepers and are charged with generating and | | | | annual tax responsibilities. Hire an accountant. If |
| interpreting financial statements. NOTE: The tasks | | | | you have bookkeeping and accounting staff but |
| just described are common for most public | | | | want someone to double-check your company's |
| financial accountants. However, in addition to | | | | financial work, hire a CPA. |
| financial accountants, there are multiple specialties | | | | To insure that you hire the right financial help |
| within the accounting field. Therefore, if your | | | | every time, be mindful about the professional title |
| company operates in a specialized industry, a | | | | you use anytime you write a job posting or |
| specialized accountant may be in order. | | | | contact a staffing firm. That will set the tone for |
| Certified Public Accountant (CPA) - As the name | | | | who is initially attracted or recommended for your |
| implies, a CPA is an accountant. However, a CPA | | | | company. However, along with the job title, pay |
| has expertise beyond a non-certified public | | | | special attention to the tasks listed in your job |
| accountant. To earn the prestigious CPA title, an | | | | description / hire request. That will ultimately |
| accountant must pass multiple rigorous exams | | | | dictate the response you receive and whether |
| from the American Institute of Certified Public | | | | you'll have the candidate pool you desire for the |
| Accountants and possibly obtain certification / | | | | job you need done. |
| licensure from the state in which they operate. | | | | |