Most small and midsize businesses quickly get to the point where they realize they need an accountant versed in everything from tax preparation to financial planning. When they can no longer handle all the financial work themselves, they begin looking for a bookkeeper to help them with the complexities of their finances. Some companies opt for a generic bookkeeper, while others hire a CPA, assuming that the difference between the two is more a matter of the hourly cost 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 become 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 company or organization. If he works with numbers, he can use the title without having to get a college degree, take a test, or make sure he understands finance. If he can use a calculator and is familiar with basic accounting software, he can be a bookkeeper for any company that is willing to hire him.

A CPA has to prove their qualifications

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

Education is essential

Even if someone has spent years as a bookkeeper, if they have no educational background, they cannot call themselves a CPA if they have not completed at least 120 semester hours of appropriate credit courses from a recognized educational institution. Courses must include business law, accounting, and auditing, with a focus on accounting.

Staying up-to-date is also vital

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

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