Knowing the Difference between a Bookkeeper and a CPA

Do you truly understand the difference between a bookkeeper and a CPA? To be honest, there are millions who think CPAs, bookkeepers, and accountants are all the same but, in reality, they aren’t. Yes, they may essentially have similar tasks but they all do different things and it’s confusing, to say the least. So, what are the differences? Read on to find out a little more about bookkeeping and what CPAs do too.

What Does a Bookkeeper Melbourne Do?

Bookkeepers have the essential job of keeping track of the financial records of a business. They can match up bank statements with business accounts and records and ensure the books are balanced. A bookkeeper can also deal with things such as preparing financial statements for the business and deal with tax issues too. Although not all bookkeepers may provide the latter service, it can vary depending on which bookkeeper is chosen.

Knowing the Difference between a Bookkeeper and a CPA

What Are CPAs?

A certified public accountant is essentially able to do most of the same as a bookkeeper but they also have the ability to run audits. To become a CPA, an individual has to go through a number of accounting courses as well as undergraduate courses. There is also the CPA exam which must be taken and passed. However, CPAs must work alongside a licensed CPA for a number of years in order to pass any examinations. They go through a lengthy process, more so than what bookkeepers do. However, a bookkeeper Melbourne can move onto becoming a certified public accountant as long as they go through the required steps.

Will It Make A Difference?

To be honest, bookkeepers and CPAs are very different and have two very different jobs. The bookkeeper doesn’t really have the responsibility to audit a business’ books, whereas the CPA does. It is a lot less complicated than it sounds but they can play a very important role within a business today. Far too many people don’t realize how important both of these can be. It does make a difference which one you choose to hire for your business. A bookkeeper will be needed for most businesses but there may also come a time when a certified public accountant is also needed. You have to ensure you get the right professional for your business so that you get the help you need and not waste time or money on the wrong professional.

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Learning the Differences

For most, they don’t really pay much attention to certified public accountants or bookkeepers as they think they don’t do much for their business. However, they can be very important professionals and certainly some who can contribute a lot too. There are times when having these professionals on your books can make a big difference, especially when it comes to keeping your business running smoothly. These are two very different professionals and they can do two very different jobs too. A bookkeeper Melbourne can be very important to have but you need to ensure the right professional is found.