Copyright © Debra Smith
An accountant is the same as a Full-Charge Bookkeeper, but does know how to make all the adjusting journal entries for the month and the year end.
Must have at least a basic knowledge of accounting principles. The more knowledge and experience they have, the less supervision is needed. Good bookkeepers know when to call for help from your CPA or other tax advisor. Bookkeepers handle the daily transactions involved in recording the money coming in and going out of the business. The Bookkeeper also makes sure that there is a filing system all the documents backing up every transactions. Bookkeeping duties are varied, depending on the size of the business.
CPA (Certified Public Accountant)
A CPA does have a college degree and has sat for the state's CPA exam. While they do learn accounting principles, their main focus in on tax returns. Believe it or not, there are CPAs that have no idea how to take care of the daily bookkeeping or even how to do journal entries. However, that does not make them a bad CPA. CPAs should not only be able to help you determine what your entity structure is, but prepare your tax returns, analyze your financial statements, and be able to discuss with you any issues that you should be aware of.
Has solid knowledge in accounting principles and experience in "closing the books" on a monthly basis. A Full-Charge Bookkeeper will know how to balance all the accounts, analyze the financial statements to know they are accurate, and prepare the financial statements to be issued to the owner(s) and other interested parties. A Full-Charge Bookkeeper should also know how to make adjusting journal entries where necessary. They work with very little supervision and can communicate well with your CPA when needed. They may or may not have a college degree.
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