Difference Between A Tax Preparer And CPA

Two types of qualified individuals that prepare tax returns are tax preparers and Certified Public Accountants. Though they differ slightly from one another, they both serve comparable purposes. Unlicensed persons who concentrate only on tax preparation are known as tax preparers. On the other hand, an accountant in Clifton Park, NY is qualified experts that offer several specialized accounting services. We have all the information you need if you’re curious about how the two differ. The main distinctions between CPAs and tax preparers are outlined in this article. Let’s get started! 

Introduction To A Tax Preparer

They are finance professionals responsible for preparing and calculating taxes on behalf of your business. They also file income tax returns. Further, they make sure that taxes are filled before the deadline. This eliminates the chances of any penalties. There are different types of tax preparers. These include credentials and others are non-credentials. The primary function of a tax preparer is to file tax forms. These tax preparers have a proper understanding of the tax laws. 

Who is a CPA? 

A certified public accountant is a professional expert who handles finances and all accounting tasks. The state board of accountancy licenses CPAs after passing a particular exam. Further, they meet certain education and experience requirements. Some major tasks performed by a CPA are: 

  • Tax Preparation
  • Financial reporting
  • Audit work
  • Forensic research
  • Personal financial planning
  • Information management
  • Forensic Accounting
  • Technology assurance.

Difference Between Tax Preparer and CPA 

Here is a quick difference between a tax preparer and a CPA:

Aspect Tax Preparer Certified Public Accountant (CPA)
Professional Title Tax preparers have different titles, like tax consultant, tax preparer, tax advisor, or enrolled agent. CPAs hold a particular professional designation as a CPA. 
Qualifications Tax preparers do not need any certifications or formal education.  CPAs must meet particular experience, education, and examination requirements.
Scope of Services Tax preparers focus majorly on filing and preparing tax returns for businesses and individuals. They offer basic tax planning assistance and advice.  CPAs offer different services besides tax preparation. These include auditing, accounting, financial planning, consulting, and more. 

Final Words

Although these professionals provide tax-related services. CPAs usually have more stringent training and certification requirements, provide a wider range of services, and are held to higher professional standards and regulations.

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