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Why Businesses Require a CPA Miami, Know the Roles of a CPA and an Accountant

Every business, whether they are small or big, they need a tax and financial advisor. However, your business requires not an accountant alone, but a CPA Miami, a Certified Public Accountant.

Here are some differences in an accountant and a CPA:

Accountant refers to being a general or common term. It relates to tax and financial professionals following particular regulations and rules that are the standards and rules set by the Financial Accounting Standards Board.

On the other hand, the CPAs are people who have passed the state licensing examination. They are the accountants and can be referred, but you cannot refer the accountants as CPAs.

Generally, most small businesses use the accounting Miami services, and today it is not difficult to find competent accountants serving the small companies. If it is a very small business, the accounting needs may be handled by the accountant itself, but using the CPA services in specific circumstances offers the essential advantages.

Tax Laws

CPAs are experts, even they may not specialize in the taxes of small business, yet most CPAs are aware of the tax laws than mere accountants. The tax code knowledge carries weight and a CPA’s licensing exam is about the tax courses. The CPAs are expected to stay update on the Tax code. Designation of an accountant is certainly below a CPA. Thus, even if they sign, prepare tax returns, and are the mainbookkeeper Miami, they do not have the certification and the accountant is not allowed to represent before the IRS, even if a CPA has officially signed your tax return.

Note: Accountant is termed as ‘unenrolled prepares’ by the IRS.

The IRS is expected to have a tax identification number of the preparer. Thus, IRS categorizes the preparers who include the attorneys, CPAs, enrolled agents, and unenrolled preparers. The last category is the place the accountants fall and the opportunity to go before IRS for a client tax matter is not permitted.


A CPA is state licensed and is expected to keep with current tax laws to maintain a license. Accountants do not have a license. Actually, the CPA exam is a painstaking process; it includes many facets of tax and financial expertise. The CPAs once licensed may comply with education continuing requirements so that their licenses are maintained, while the bookkeeping Miami accountants have no such requirement.

Financial Analysis

Bookkeepers or the regular accountant perform the routine tasks of input records through a financial software program. The accountants review, prepare and also analyze the P&L and the balance sheet. CPAs do a thorough and detailed analysis as they advise on financial and tax matters. The CPA designation is higher to an accountant; they put their license ahead, give financial advice and are more prepared to handle tax matters.

IRS Audits

Hiring for business taxes a CPA has big reason and that is a CPA is qualified and has the eligibility to present on behalf of a client in an audit before the IRS, while an accountant is not accepted to appear before an IRS. Accountants can represent the clients to some restricted manner as they are not CPAs. Thus, getting a professional prepare you tax means you are certain this person has adequate knowledge and full authority to execute claims and also to represent you before the IRS audit on your behalf.

Plainly speaking, the accountant does the regular work and complete tax returns, at the same time, the CPAs analyze your work, help in taking tax decisions and doing high-level business, and represent you in a tax audit. The CPAs charge more than that you pay to your accountant, but at the same time, you get that you pay for with CPA.

Bottom line

Hiring a CPA firm that has an accountant and a bookkeeper is the best. This is helpful as you can get the routine financial jobs and the financial and tax analysis was done simultaneously. If not, you can hire an accountant or a bookkeeper Miamifor quarterly, monthly, and yearly reports and periodically take the CPA consultation and get the business taxes done yearly by a CPA. You may also ask the CPA to review, sign on the tax return that is prepared under the direction of the CPA by an accountant.