Jean A. Cordasco CPA – Accounting
What does an accountant do?
The Webster’s Dictionary definition of an accountant is “a professional who is responsible for retaining and interpreting financial records.” What this means is, accountants are mainly responsible for a business’s internal revenue and expenditures. They record the revenue when received, and expense the costs when they are incurred.
At the end of an accounting period, accountants then prep the four financial statements in accordance with GAAP (Generally Accepted Accounting Principles). These include the:
- balance sheet
- income statement
- cash flows statement
- statement of shareholder’s equity.
After the financial statements are prepared and examined for accuracy, the financial statements are then given to top management for review. Accountants can assist management with ways to reduce costs, or recommend the best financial practices moving forward. If you are a stockholder within a company, you as well have the ability to see the four financial statements prepared by the company’s accounting department.
What is the difference between a CPA and an accountant?
One of the biggest differences between a Certified Public Accountant (CPA) and an Accountant is education. Most accountants typically have achieved a bachelor’s degree. Whereas a CPA is a special classification of an accountant.
CPA is a designation earned after completing specific educational and work requirements as well as passing the CPA exam. However, CPA certifications vary by the state that you reside. For example, the state of New Jersey’s CPA requirements are different from the requirements needed to become a CPA in Georgia.
A CPA analyzes the financial data collected by the accountants, or they can create the financial statements themselves. CPAs can also perform internal audits for a corporation. Additionally, CPAs each year have to complete continued education training in order to retain their CPA license
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