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What is a CPA? Differences in Accounting Titles

LDG Accounting Services • July 3, 2023
small business team

Certified Public Accountant

Certified Public Accountant (CPA): A CPA is a licensed accountant who has passed the Uniform CPA Exam and met state-specific education and experience requirements. CPAs can provide a range of services, including audit and assurance, tax preparation and planning, financial planning, and consulting. They have a broad knowledge of accounting principles and can represent clients before the IRS.

Enrolled Agent

Enrolled Agent (EA): An EA is a tax professional who is licensed by the IRS. They have passed a three-part exam that covers individual and business tax returns, and they are authorized to represent clients before the IRS for audits, collections, and appeals. EAs can provide tax planning and preparation services, and they have a deep understanding of tax codes and regulations.

Accountant

An accountant is a professional who manages financial records and prepares financial statements for individuals and businesses. They may specialize in areas such as tax, auditing, or financial analysis. Accountants may hold a bachelor's or master's degree in accounting, finance, or a related field, and they may be licensed as a CPA.

Bookkeeper

A bookkeeper is responsible for maintaining accurate financial records for a business or organization. They record and categorize financial transactions, reconcile accounts, and generate reports. Bookkeepers may not have a degree in accounting, but they should have a solid understanding of accounting principles and software.

Understanding The Differences

In summary, CPAs and EAs are licensed professionals who can provide a range of financial services and represent clients before the IRS, while accountants and bookkeepers may have different levels of education and experience in managing financial records. If your small business or nonprofit needs assistance in Metro Atlanta, contact us today to learn more about our accounting services and bookkeeping.

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