When you need help with your finances, it can be difficult to know who to turn to. There are a myriad of accountants, planners, and advisors out there, each catering to different clients with various needs.
To help you in your search, here are 3 key differences between a certified public accountant (CPA) and a tax preparer:
- CPAs bring a depth of knowledge to their clients. Tax preparers are trained in filing taxes on behalf of individuals and businesses, while a certified public accountant undergoes education and training in financial management. CPAs apply their expertise in both tax law and financial best practices to help their clients minimize their tax burden and maximize their assets.
- CPAs require extensive education and certification. Education and credentials are another major difference between CPAs and tax preparers. Tax preparers do require training and must get a Preparer Tax Identification Number (PTIN) in order to lawfully practice. CPAs also need a PTIN, but they also require a higher-education degree, supervised work experience, and must pass CPA exams before they can offer their services.
- CPAs help beyond taxes. While tax preparers focus on tax preparation and filing, a CPA can assist their clients in a myriad of financial and accounting services. From bookkeeping and payroll services for a small business to personal financial advising and planning for individuals, CPAs help their clients with a host of financial needs.
Ultimately, choosing between a certified public accountant or a tax preparer depends on your needs. While a tax preparer can get your yearly taxes in order, a CPA is equipped to manage the whole of your finances.