How Can You Distinguish An Accountant From A CPA?

A Certified Public Accountant (CPA), holds a distinctive place in the world of accounting and finance. If you look closely, you will see and realize that a majority of businesses nowadays, prefer hiring licensed CPAs to handle their accounting, auditing, and taxation processes.
A general accountant, on the other hand, possesses extensive knowledge of accounting and financial matters. But there are some aspects where the expertise and the degree of a CPA matter most. Those are the places where a general accountant’s role gets bifurcated.
In this excerpt, we will talk about the factors of differentiation between an accountant in Venice and a CPA.

Degree, Training, and License

The process of becoming an accountant involves the study of finance, and having at least a bachelor’s degree in finance, management, business, or a similar field. A general accountant is normally trained on the job, or the person might receive some training through internship programs. General accountants also do not require any kind of license to practice.
On the other hand, people pursuing a CPA degree must have a bachelor’s degree in finance or related subjects, after which they become eligible to apply for the CPA examination. Pursuing candidates have to follow a strict and rigorous test schedule to attain the license of their practice in their respective states.

Roles and Responsibilities

General accountants do not have a specific governing body to regulate them. The role and responsibilities of a general accountant in Venice include auditing, bookkeeping, planning the future prospects of a business, as well as observing the overall situation of the company.
When it comes to CPAs, they are governed by respective state boards of accountancies. Public accounting is one of the major roles of a certified CPA. CPAs are the only professionals in the assurance service category who are capable of preparing an audited or reviewed financial statement.

Fiduciary Responsibilities

A fiduciary can be defined as a person, or an organization, that has the authority to represent others.
General accountants without a CPA degree, are not considered fiduciaries to their clients. Because they lack the authority and the designation to represent their clients. Even though they abide by certain ethics and regulations, they do not qualify as someone who would represent their clients.
On the other hand, it is the job of a CPA to act as a fiduciary to their clients. They have the power to legally represent their clients in front of the IRS.
Hence, these are the points of differentiation between a general accountant in Venice and a CPA.