Do I Need an Accountant, Bookkeeper, CPA or EA?

One of the common questions we get at the Accounting Aisle is what is the difference between a bookkeeper, an accountant, an enrolled agent, and a Certified Public Accountant (CPA). Business owners who are conscious of both staying within the law, and minding their budget, want to hire the right professional for the right job. They don't want to pay the full cost of hiring a CPA to input information into a Quickbooks file. You need the right person for the right job.

Bookkeeper. A bookkeeper is an accounting professional who helps maintain financial records for a compoany. They handle the daily recording of company accounting records. They track cash flow, billing, receivables, and lines of credit. A bookkeeper often inputs this information into an accounting system, like Quickbooks. Part of their job is to discover any discrepancy in the accounting records and rectify it.

Accountant. An accountant typically has more education than a bookkeeper. They help maintain financial records, and provide financial analysis for companies. An accountant is often hired to file taxes and make sure a company is operating within local, state, and federal laws. An accountant has a thorough knowledge of cash flow, owner's equity, balance sheets, chart of accounts, and their effects on a business.

Certified Public Accountant (CPA). In order for an accountant to become a CPA, they have to pass the uniform CPA exam. To achieve this designation, an individual usually has to complete 5 years of education, and a certain degree of work experience. CPAs are regulated by state Boards of Accountancy. The state issues certificates and licenses to individuals who complete the education requirements, pass the exam, and continue to fulfil their continued education obligations. Many business owners prefer to hire a CPA because of this level of education and the belief that they can handle more sophisticated accounting issues.

Enrolled Agent (EA). If you are being audited by a taxing agency, it might make sense to hire an Enrolled Agent. And EA is a government-certified professional duly authorized to represent taxpayers, whether an individual or a business entity. Enrolled Agents are experts in negotiating with the IRS. They can get favorable terms for payments, collections, and tax audits.

No matter what your accounting need is; the Accounting Aisle is dedicated to helping you find the right level of accountant for your business.