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Most small to medium-sized businesses quickly reach the point where they realize they need an accountant who is well-versed in everything from tax preparation to financial planning. When they can no longer handle all the financial tasks themselves, they start shopping for a bookkeeper to help them with the complexities of their finances. Some companies opt for a general bookkeeper, while others hire a CPA, believing that the difference between the two is a matter of hourly cost for their services versus the services they provide. more than any difference. In fact, there are many differences between them that make a certified public account worth every penny you spend.
anyone can become an accountant
And that means anyone. There are no federal or state guidelines that a person must meet before hanging their shingle as an accounting specialist. In fact, this definition explicitly allows anyone who is interested in keeping the books to advertise themselves as an accountant, which is simply a person who takes care of the financial records of a business or organization. does. If you work with statistics, you can use the title without getting a college degree, taking an exam, or making sure you understand finance. If you can use a calculator and are familiar with basic accounting software, you can be a bookkeeper for any company that wants to hire you.
A CPA has to prove its worth
However, you can’t just put up a sign and become familiar with bookkeeping to become a Certified Public Accountant. The certification process is a tight one. You must take a series of tests and pass them with the proper score in order to be allowed to refer to yourself as certified. In the state of Illinois, no less than four exams are required and you must pass each of them. Rigorous testing ensures that everyone who passes is properly trained. What is that training? In most states, this means that you have attended college and earned the appropriate degree.
education is important
Even if someone has spent years as a bookkeeper, if they do not have an educational background, they cannot call themselves a CPA if they have not completed at least 120 semester hours of appropriate credit courses from an accredited educational institution. Have done Courses include business law, accounting, and auditing, with a focus on accounting.
keeping current is also important
Holding the CPA designation can be just as difficult as obtaining it because there are strict guidelines for maintaining the certification. Anyone who is a CPA is required to complete at least 80 additional hours of continuing education every two years to stay up to date on the ever-changing laws and regulations surrounding business accounting practices.
Would you pay a little more to act as a Certified Public Accountant for your company? Yes, but you will soon realize that their knowledge, training and experience are valuable assets that will save your company a great deal in terms of peace of mind and the best possible financial decisions for you and your business.
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