Many people are confused about the difference between certified public accountants (CPAs) and tax accountants, which are both professions in the financial world that commonly deal with tax returns. You may have even used the two terms interchangeably, and that’s understandable. But the truth is that there are many differences between these technical terms.
While a CPA is certified and licensed to give a wide range of business advice and handle complex accounting/tax tasks, a tax accountant may not have all of these qualifications, but can assist in the many situations that arise from tax payment, from filing to audits and beyond.
So, understanding the nuances of a CPA vs. tax accountant is key to ensuring you make the right hire or get into the right accounting career.
At Cg Tax, Audit & Advisory, we are proud to have a team of highly skilled CPAs and tax accountants, which is why you can trust us to walk you through these differences in detail. Let’s dive in!
Are All CPAs Considered Accountants?
Yes! All CPAs are accountants, but not all accountants are CPAs. In the accounting world, a specific certification sets CPAs apart from other accountants. A Certified Public Accountant (CPA) is a professional who has passed the rigorous certification and licensing process set by the state they are practicing in.
Usually, to qualify as a CPA, you must complete 150 semester hours of college education, pass the Uniform CPA Exam, and have two years of public accounting experience. CPAs can defend tax returns, offer fiduciary services and business consulting, and perform external audit services, among many other specialized accounting tasks.
While tax accountants don’t have to pass a uniform exam or meet certain educational requirements, you’ll still need to earn a bachelor’s degree in finance or
accounting to become a tax accountant. Many tax accountants also go on to earn a master’s degree in a financial field and may apply their particular background in taxation and auditing to specialized accounting for different industries.
With their expertise in business tax services, auditing, taxation, and other financial areas, both our CPAs and accountants at Cg provide a powerful combination of services that is unmatched by any other professionals. And their proven experience makes them especially qualified for the wide-ranging needs of our diverse clients.
Looking for a Career in Accounting?
Interested in a career in accounting? Becoming a tax accountant is a great way to join a rewarding field that’s full of opportunities, and not just at tax time. Furthermore, a CPA certification can open doors to many new career advancements, including executive-level positions.
No matter what path you choose, Cg Tax, Audit & Advisory can guide you through the process of becoming a professional accountant through our full-time paid internship program.
Here, you will be part of an elite team of experienced, certified accountants – from CPAs to Certified in Financial Forensics holders (CFFs), Certified Financial Planners (CFPs), Chartered Global Management Accountants (CGMAs), MBAs, and more.
Our knowledgeable team will provide you with comprehensive insight into all facets of accounting, such as tax, audit and assurance, litigation, business valuation, forensic accounting, healthcare accounting, and others.
In addition to providing a career head start, a healthy work environment and a flexible remote/hybrid work model, we’ll also keep you updated on job openings at our firm so that you can stay ahead of the curve for future opportunities.
So, if you’re looking to pursue a career in accounting, contact us today and start your journey with Cg!
FAQs
A CPA can represent taxpayers and companies in the event of an audit. While accountants can prepare tax returns, only a CPA can defend a return if the IRS or state tax authorities have questions or concerns.
What can a CPA do that an accountant Cannot? ›
Accountants are legally allowed to prepare tax returns, although they may not have as much knowledge of tax codes as a CPA does. Another important distinction is that CPAs can represent clients in front of the IRS in the event of a tax audit, and they can sign tax returns, whereas non-CPA accountants cannot.
Why is a CPA better than a tax preparer? ›
However, in the context of CPA vs tax preparer, the primary difference lies in their scope of work, level of expertise, and licensure. While CPAs are licensed professionals offering a wide array of expert accounting services, tax preparers are non-licensed and specialize in only tax preparation.
Is a CPA better than H&R Block? ›
A CPA is a licensed, certified professional who specializes in your specific tax needs. Further, they have focused their careers on knowing the ins and outs of up-to-date tax laws and regulations. It is important to understand the services provided by H&R Block may not be the same quality when handled by a non-CPA.
What is the difference between a tax specialist and an accountant? ›
Tax consultants are more involved in strategic planning and advising on complex tax issues, whereas tax accountants focus on the practical aspects of preparing and filing taxes. For instance, a start up exploring international expansion would benefit from a tax consultant's expertise in international tax law.
Is accounting worth it without CPA? ›
The Job Outlook for Non-CPA Accountants
“It's rare to have a client who only wants someone with a CPA,” says Campman, “and that's true across all industries.” The healthcare, consumer products and financial services industries are the top market drivers. Roles that don't require the CPA include: Staff accountant.
Why are tax accountants so expensive? ›
A national shortage of CPAs and support staff is driving up prices. American taxpayers had to pay at least 20% more on average to get their taxes done last year — and accountants aren't thrilled about it either.
Is it worth using a tax accountant? ›
CPAs are adept at dealing with the IRS.
If you're audited or owe back taxes to the IRS, your CPA can help resolve the issue in your favor. Their knowledge and participation can minimize penalties, lower assessed taxes and give you more time to pay what you owe.
Do CPAs make more money than accountants? ›
Because of their skills and experience, CPAs typically make more money than accountants in general.
Why might you seek the help of a tax attorney rather than a CPA? ›
For complex issues, such as dealing with the IRS on serious matters, criminal tax matters, or handling tax litigation, the legal knowledge of a tax attorney is preferred over that of a CPA. Their advanced training in tax law and litigation provides the necessary skills in these challenging situations.
If your income and filing status is about the same as last year and your return is relatively simple you'll probably be okay filing on your own. On the other hand, if you've gotten married, changed jobs or gotten a raise it might be wise to get professional help.
Is it better to get your taxes done or do them yourself? ›
For example, if you have only one W-2 and no deductions, the best do-it-yourself tax software may be the way to go. But in other cases, you may need more guidance. If you own a business, sold investments or worked in multiple states in 2022, you may want to hire a tax professional.
Is TurboTax as good as a CPA? ›
Lack of In-depth Tax Planning: While TurboTax can assist in preparing tax returns for the current year, it may not provide comprehensive tax planning advice for the future. A CPA can offer strategic insights to optimize tax planning and maximize tax savings in the long run.
What is the highest salary for a tax accountant? ›
Tax Accountant salary in India ranges between ₹ 1.2 Lakhs to ₹ 11.5 Lakhs with an average annual salary of ₹ 4.3 Lakhs. Salary estimates are based on 574 latest salaries received from Tax Accountants.
Is an accountant higher than an accounting specialist? ›
In terms of experience, exposure, and pay, an accounting specialist has a bigger edge than an accountant because they are aware of the key financial areas of the organization, whereas an accountant's job is to maintain the books of one particular financial line item.
What is above an accounting specialist? ›
Accounting Supervisor
An upper-level accounting professional who directly oversees one or more accounting specialists. Similar to an accounting manager, they are usually subordinate to the manager, or report directly to the controller or CFO.
Do CPAs make more money than accountants that are not CPAs in general? ›
Salary. Because of their skills and experience, CPAs typically make more money than accountants in general. The average salary for accountants is $61,480 per year , while the average salary for CPAs is $92,795 per year .
What accountants should not do? ›
Accounting professionals must respect client confidentiality and not disclose any information to third parties without specific authority to do so. For example, it'd be wrong to reveal details of a proposed merger without your client's permission. Similarly, you shouldn't share any confidential information internally.
Is being a CPA a big deal? ›
The CPA designation is the most valuable designation you can get if you are going into accounting and finance. It validates a general understanding of accounting and finance topics, and it opens a lot of doors in both the private and public sectors.
Is a CPA a fiduciary? ›
While an accountant normally is not considered to be a fiduciary to his or her clients, the AICPA Professional Code of Conduct embodies standards of conduct which are closely analogous to a fiduciary relationship—objectivity, integrity, free of conflicts of interest and truthfulness.
