CPA vs non-CPA accountants
So you have decided you need an accountant for your personal or business finances, now comes the critical decisions. Who should you hire, and how much is this going to cost you? There are some significant differences in the types of accountants and the most obvious difference is whether they are CPA or non-certified accountants. Because non-CPA accountants have not spent the time and money necessary to becoming certified , they are significantly less expensive. So, before hiring CPA make sure the difference in that certification justifies the cost difference. Education - There are no educational requirements for a non-certified accountant. Anyone can decide they are an accountant. In most states if a non-CPA wants to prepare taxes they will need to complete some classes and take continuing education course each year. On the other hand, CPAs usually have a bachelor’s degree in accounting. In addition, they are required to work for a law firm for two years and complete five hundred hours of auditing time. The certification exam covers area such as theory, practice, auditing, and law. To maintain their license they will need to take continuing education courses. Types of Financial Statements - There are three types of financial statements prepared by accountants: audited, reviewed, and complied. CPAs can prepare any of these types of statements, while non-CPAs can only prepare complied statements. Audited and reviewed statements both require the CPA to state that the company’s financial information has been examined to some extent. Banks, business investors, and stylo stockholders may require audited statements to prove the validity of the information. The bigger your business the more likely you will be required to submit an audited or reviewed financial statement. In conclusion, if you own a small business or just want some professional assistance with your personal finances you have the option of either a CPA or a non-certified accountant. There are excellent and well qualified non-CPAs rast available. Additionally, there are bad CPAs that have destroyed businesses. Before hiring any type of accountant, you will want to check their personal experience and references. When you hire a CPA you can feel confident that they have a solid base of knowledge and experience. With a non-CPA, you may need to rely more heavily on reliable references and double check their work early in your relationship. With either choice never be afraid to check their work or get a second opinion. IL