What Is The Difference Between A Tax Accountant And A CPA?

When businesses think about filing the taxes, they often look for professional tax services. Such services help them handle all legal paperwork regarding the taxes and also helps businesses to save on taxes. Here, the CPA firm services come to the rescue, and these services work as expert guidance and assistance to the business owners.

 However, if you are new to this business, you might be thinking about whom to hire- A professional CPA or a tax accountant? The answer depends upon the specific requirement and tax situations.

Both the CPAs and tax accountants are professional tax experts, but they perform different tasks. Here you will know the major difference between a tax accountant and a CPA, and then you can easily decide whom to choose for your business taxation needs. 

Who is a CPA or a Certified Public Accountant?

In terms of accounting and taxation, having a CPA license is one of the most important credentials an individual can get after attaining the maximum level of knowledge and expertise in this field. Becoming a licensed CPA will help in expanding various career opportunities and lead to more revenue. CPA is the professional who has passed the CPA category examination and fulfilled the given training and work experience needed to get this license. Every state has its own set of rules and regulations that the candidate has to go through before getting the license. There is no such national CPA license; it is given state-wise.

As the CPA gets the American Institute of Certified Public Accountants’ license, the expert will get permission to practice in the particular state that has been granted in the license provided. The CPA can have a license from other states under the given circumstances. Some of the major services offered by the EPA are-

  1. Preparing The Taxes and Offering the Tax Advice- The expert provides the income tax returns for several businesses as well for the individuals. CPA also provides advice to the client on tax situations and how to save money on taxes. 
  2. Financial Statement Audits– CPAs have the career for preparing the taxes, and it is one of the most important points in the long list of services offered. CPA audits the financial statements daily and advises on what is required. 

Who Is the Tax Accountant?

These professionals work with the clients to give the tax return documents compliant with the tax laws and regulations. They also give the clients updated on the tax return information and develop the plan for the business to reach desired goals. 

How Does a Tax accountant Differ From CPA Services?

Though both seem similar, there is a distinct difference between the tax accountant and CPA firm services. Most of the tax accountants are CPAs, but not all the CPAs are tax accountants. A tax accountant who is a non-CPA will prepare and compile the statements whereas, the CPA guides the clients during the tax-saving and developing the IRS audits for the business.

 If you need guidance on tax savings, interstate taxes, or even tax audits, you can consult with the CPA from Ellis CPA firm, one of the trusted firms on taxation and audits.