Managing your finances is a complicated task in every business. Thus, business owners rely on accounting firms and Centennial CPA firms for financing services. There are accounting professionals who guide you at every step. They also ensure that you make wise financial choices. We can help if you’re wondering what makes a CPA different from an accounting business. This article highlights the major differences between an accounting firm and a CPA. Let’s dive in!
Introduction To The Accounting Firm
A company where many accounting experts collaborate to provide their clients with full financial and accounting services is called an accounting firm. Some major services offered here:
- Auditing
- Bookkeeping
- Payroll processing
- Tax Preparation
- Consultation services
To open an accounting firm, you must have experience in accounting. These private or public companies provide the greatest financial guidance to help clients make wiser financial decisions.
Introduction To CPA Firm
A certified public accountant is also known as a CPA. They are highly experienced professionals who pass the state license exam. Also, they carry out various financial duties. Some major services include:
- Estimating income
- Managing accounts
- Doing audits
- Creating financial reports
- Guaranteeing adherence to accounting standards
Difference Between CPA and Accounting Firms
Here is a quick difference between CPA and Accounting Firms:
| Particulars | CPA | Accounting Firm |
| Definition | A CPA is an expert who has passed a particular examination set by the state. | An accounting firm is a business entity. They offer various financial services to their clients. |
| Qualification | After passing the examination, a CPA holds a CPA license. | An accounting firm does not hold any degree. However, they hire CPAs who have licenses. |
| Services offered | Most popular services include tax preparation and auditing. They also offer financial planning and consulting services. | Various services offered by an accounting firm include auditing and advisory services. They also offer tax planning, bookkeeping, and financial analysis. |
| Expertise | CPAs are great at their work. They work hard for several years and clear it. | Promotes collective expertise as an accounting firm hires professionals offering excellent services. |
| Work scope | Have chances to work in various capacities, including corporations, independent consultants, public accounting firms, or government agencies. | Hire professional experts who can handle everything from small business to large-scale enterprises. |
Wrapping Up
Accounting and CPA firms are important to manage your business’s financial activities. Both of them offer excellent accounting services that help your business to grow.