CPA vs. Accountant: Who Does What?
Every business needs accounting help, but not every business needs a CPA. The titles “accountant” and “CPA” are often used interchangeably, yet their qualifications and roles differ. Accountants manage daily financial reporting, while CPAs (Certified Public Accountants) provide specialized expertise, compliance reviews, and tax representation. This guide breaks down the difference between the two so you can decide when to hire an accountant, when to call a CPA, and how to build the right financial team for your business.
Explore our Accounting Services to see how we can help streamline your finances.
What an Accountant Does
Accountants organize, interpret, and report financial data.
Their typical responsibilities include:
- Preparing monthly financial statements
- Managing payroll and reconciliations
- Filing basic business taxes
- Creating budgets and forecasts
They ensure your books are accurate and up to date, forming the foundation for informed decisions.
What a CPA Does
CPAs are accountants who’ve earned additional licensing by passing the Uniform CPA Exam and completing state-specific requirements.
They can:
- Represent clients before the IRS
- Perform audits and assurance services
- Review and certify financial statements
- Provide advanced tax planning and compliance advice
Every CPA is an accountant, but not every accountant is a CPA.
Discover the key differences between accounting and bookkeeping in this quick guide on Accounting vs. Bookkeeping.
When You Need an Accountant
Hire an accountant when you:
- Need ongoing bookkeeping, payroll, and reporting
- Want consistent monthly financial statements
- Require help managing cash flow and budgets
- Are not facing audits or complex tax structures
Accountants handle the operational side of finance, keeping your numbers reliable and ready for analysis.
When You Need a CPA
Engage a CPA when you:
- Need certified financial statements for lenders or investors
- Face complex multi-state or corporate taxes
- Require audit support or IRS representation
- Want strategic advisory beyond standard accounting
CPAs bring oversight and compliance assurance that regular accountants can’t legally provide.
Combining Both for Complete Coverage
The best approach is collaborative. Accountants maintain the books daily; CPAs review and advise periodically.
At RemoteBooksOnline:
- Your monthly accounting is handled by certified accountants.
- CPA partners review reports quarterly for accuracy and compliance.
- You receive strategic tax guidance before deadlines, not after.
You get CPA-level precision without full-time CPA cost.
Wondering when to outsource accounting? Our guide helps you determine the right time to make the switch.
FAQs
What’s the main difference between a CPA and an accountant?
A CPA has additional education, certification, and licensing to handle audits, advanced tax matters, and representation.
Do small businesses need a CPA?
Not always. An accountant handles day-to-day reporting; CPAs are best for audits or complex filings.
Can a CPA also do bookkeeping?
Yes, but it’s usually more cost-effective to have an accountant handle bookkeeping under CPA review.
Should I hire both?
Ideally, yes. A combined accountant + CPA model offers daily accuracy and compliance assurance.
Need accurate, tax-ready books? Our CPA bookkeeping services offer monthly reconciliations, flat-rate pricing from $150/month, and your first month free-no contracts or hourly fees.
Need professional bookkeeping? Check out our Hire a Bookkeeper service-CPA-reviewed monthly closes, first month free, no contracts.
