Summary
AllCPAsare finance professionals, but not all finance professionals are CPAs. CPAs are licensed, have passed rigorous exams, and can perform audits, IRS representation, and attest services. A non-CPA tax expert works great for bookkeeping and compliance—but complex needs often require a CPA.
Accountant vs CPA
Curious about the difference between a CPA and a general tax expert? Reddit’s r/Accounting sums it up best:
“All CPAs are accountants, but not all accountants are CPAs.” (View the full Reddit discussion)
Let’s dive into what that means, and when each makes sense for your business.
What Is a Tax Professional?
Tax professionals handle day-to-day finance tasks like managing records,payroll, and preparing statements.
No license is required in most U.S. states
Roles:bookkeeper, finance specialist, controller
Typical focus: internal reports,tax prep, and recordkeeping
What Is a CPA?
ACertified Public Accountantis a licensed professional who:
Meets strict education and experience requirements
Passes the Uniform CPA Exam
Completes ongoing continuing education annually
CPAs can:
Sign audit reports
Represent clients before the IRS
Offer advanced tax strategy and attest services
CPA vs. Tax Professional Comparison
| Role | Credentials | Services Provided | Ideal for... |
|---|---|---|---|
| Tax Professional | No license needed | Bookkeeping, financial statements, payroll, basic taxes | Daily operations, internal compliance |
| CPA | Licensed (exam + education + CPE) | Audits, IRS representation, tax planning, attest services | Complex filings, audits, legal/tax strategy |
Insights from Reddit
Reddit users in r/Accounting note:
“A bookkeeper has a job with work/life balance. A CPA has a job where they’re told they have one.”
“Typically a tax pro will keep the books. A CPA provides expert guidance on GAAP compliance and tax-efficient structuring.”
FAQs
Q: Do I need a CPA for taxes?
A: Not always. For simple returns or bookkeeping, a qualified financial professional may suffice. But if you need audits, IRS help, or high-level advice, a CPA is essential.
Q: Can a CPA also do bookkeeping?
A: Yes, especially at small firms. But you might pay more for work another tax preparer could handle.
Q: What about Enrolled Agents (EAs)?
A: EAs are IRS-licensed tax pros who specialize in filings and representation, but they don’t do audits or attest services.
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Author: Kimi, Co-founder of Sam’s List
Kimi writes about what she's learning while building Sam’s List and shares honest takeaways from her conversations with finance professionals and business advisors across the country. None of this is financial advice—just the stuff most people wish someone told them sooner.
External Resource:Learn more from the American Institute of CPAs on CPA licensing and standards.
