Why A Certified Public Accountant Is Worth Every Penny While Accountants Are Worth A Dime A Dozen

Most small and medium-sized businesses quickly get to the point where they realize they need an accountant who is trained in everything from tax preparation to financial planning. When they can no longer handle all the financial work on their own, they start looking for an accountant to help them with the complexities of their finances. Some companies opt for a generic accountant while others hire a CPA, assuming that the difference between the two is more a matter of cost per hour of their services than any difference between the services they offer. In fact, there are numerous differences between them that make a Certified Public Account worth every penny you spend.

Anyone can be an accountant

And that means anyone. There are no federal or state guidelines that a person must meet before they can hang their tile as an accounting specialist. In fact, the very definition clearly allows anyone who is interested in doing the books to advertise as an accountant, which is simply someone who deals with the financial records of a business or organization. If you’re working with figures, you can use the degree without having to get a college degree, take an exam, or make sure you understand finances. If you can use a calculator and are familiar with basic accounting software, you can be an accountant for any company that wants to hire you.

A CPA must prove their qualifications

However, you can’t just put up a sign and be familiar with accounting to be a Certified Public Accountant. The certification process is rigorous. You must take a series of tests and pass them with the appropriate score to be able to refer to yourself as certified. In the state of Illinois, no fewer than four exams are required and you will need to pass each one. Rigorous testing ensures that everyone who passes has received the proper training. What does that training imply? In most states, it means you’ve been to college and earned a degree.

Education is essential

Even though someone has spent years as an accountant, if they do not have the academic background, they cannot be called a CPA if they have not completed at least 120 semester hours of the appropriate credit courses from a recognized educational institution. Courses should include business law, accounting, and auditing, with a focus on accounting.

Staying up-to-date is also vital

Maintaining a CPA designation can be as difficult as obtaining one because there are strict guidelines for maintaining certification. Anyone who is a CPA must complete at least an additional 80 hours of continuing education every two years to keep up with the ever-changing laws and regulations surrounding business accounting practices.

Will you pay a little more to have a Certified Public Accountant work for your company? Yes, but you will soon realize that your knowledge, training, and experience are valuable assets that will save your business much more in terms of peace of mind and the best possible financial decisions for you and your business.