Understanding the Difference Between a CPA and an Accountant

When tax season rolls around or your business finances get more complex, you may find yourself asking:
“Do I need an accountant… or a CPA?”

Many people use the two terms interchangeably, but there are major differences in qualification, authority, and the types of services each professional can provide. Choosing the right one can make a significant impact on your financial accuracy, tax outcomes, and risk exposure.

As trusted advisors at Wilson & Associates CPA, here’s our clear, client-focused breakdown of the differences.

An accountant is a financial professional who helps with recordkeeping, reporting, and financial organization. Their background may include:

• A bachelor’s degree in accounting or finance
• On-the-job experience
• Bookkeeping or financial reporting coursework

• Bookkeeping and transaction recording
• Preparing basic financial statements
• Managing payroll
• Tracking expenses, invoices, and accounts
• Assisting with budgeting
• General financial organization

• Small businesses with basic bookkeeping needs
• Individuals who need help organizing finances
• Businesses needing monthly or quarterly financial reports

Important: Accountants can prepare taxes, but they are not regulated by the state and do not carry the same authority as a CPA.

A CPA is an accountant who has completed significant additional requirements, including:

• Passing the rigorous Uniform CPA Exam
• Completing state licensing requirements
• Meeting ongoing continuing education standards
• Following a strict professional code of ethics

This makes CPAs the most qualified and regulated financial professionals in the accounting field.

• Represent clients before the IRS
• Conduct audits and provide audit opinions
• Perform high-level tax planning and advisory
• Prepare complex tax returns
• Handle compliance for corporations, nonprofits, and large entities

• Strategic tax planning
• IRS issue resolution
• 401(k) audit and compliance support
• Financial statement audits and reviews
• Business advisory and forecasting
• Entity structure guidance
• High-net-worth individual tax planning

• You need bookkeeping or simple financial organization
• You’re a freelancer or small business with straightforward finances
• You want help managing payroll or invoicing

• You want expert tax planning
• You have a complex tax return
• You run a business or nonprofit
• Your company needs a financial audit
• You’re being contacted by the IRS
• You’re making major financial decisions (buying/selling a business, restructuring, etc.)

Not all financial advisors are created equal. When you work with a CPA firm, you get:

• Higher accuracy
• Greater protection during IRS reviews
• Advanced tax strategies
• True financial oversight
• Strategic, year-round guidance

Whether you’re an individual, a growing business, or a nonprofit organization, a CPA can offer the depth of expertise needed to protect and grow your financial future.

Both accountants and CPAs play important roles in financial management — but the level of expertise, authority, and services differs substantially. Understanding these differences helps you choose the right professional for your needs and ensures your finances are in the best hands.

If you aren’t sure which type of support you need, Wilson & Associates CPA is happy to assess your situation and guide you in the right direction.

At Wilson & Associates CPA, we combine deep expertise with personalized service to help individuals and businesses stay compliant, reduce risk, and make smarter financial decisions. Whether you have questions about taxes, audits, or long-term financial planning, our team is here to guide you every step of the way.

Contact Wilson & Associates CPA today to schedule your consultation.