If you’re in the process of evaluating your finances and you have questions about tax planning, the tax benefits associated with incorporating your business, or you have questions about estate planning, you’ll want to speak with a professional. But at this point, you may be wondering if there are any benefits of working with a CPA versus an accountant. The answer is a resounding “yes.” For more information about the benefits associated with hiring a CPA, read on.
All CPAs are accountants, but not all accountants have a CPA credential
An accountant is a professional that can help with certain types of financial matters, such as bookkeeping, invoicing, and preparing financial documents, such as balance sheets and profit and loss statements. They record sales data for businesses, manage and pay invoices, and manage payroll. Although all CPAs are accountants, not all accountants are CPAs.
Let us explain.
When you work with a CPA, you’ll be working with a professional that has been certified by the state. To do that, they must meet certain licensing requirements, pass licensing examinations, and complete a set number of continuing education hours each year. CPAs are authorized to prepare tax documents and if needed, they can represent clients before the IRS in the event of an audit. Additionally, CPAs tend to be more knowledgeable of tax codes, they can help with estate planning, and can advise you on the benefits associated with establishing a trust.
CPAs must have completed a minimum of a bachelor’s degree in a related field, such as a BS in accounting. (Although accountants typically hold a BS degree, a BS degree is not always required to work in this field.) Also of note, is that whereas typical degree programs require students complete 120 semester hours, aspiring CPAs must complete a total of 150 semester hours (which is 30 hours more than what’s required by a typical bachelor’s degree program.)
In closing
When it comes to personal financial matters, you’ll want to make sure you’re in good hands. And while working with an accountant can be helpful in certain circumstances, if you need help with complicated tax matters, help with business tax preparation, or you have questions about estate planning, you’ll want to speak with a CPA.
At Hughes, Snell & Co., P.A., our seasoned team of CPAs works with individuals and professionals, including bankers, attorneys and others, to coordinate comprehensive solutions based on their needs. For more information about or company, the services we provide, or to schedule a virtual appointment, call us today to get started.
