Differences between: bookkeeper, CPA, accountant, tax preparer, controller, CFO (job + salary)

[@SuperGreatSphinx]

Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business and other organizations. It involves preparing source documents for all transactions, operations, and other events of a business. Transactions include purchases, sales, receipts and payments by an individual person or an organization/corporation. There are several standard methods of bookkeeping, including the single-entry and double-entry bookkeeping systems. While these may be viewed as "real" bookkeeping, any process for recording financial transactions is a bookkeeping process. The person in an organisation who is employed to perform bookkeeping functions is usually called the bookkeeper (or book-keeper). They usually write the daybooks (which contain records of sales, purchases, receipts, and payments), and document each financial transaction, whether cash or credit, into the correct daybook-that is, petty cash book, suppliers ledger, customer ledger, etc.-and the general ledger. Thereafter, an accountant can create financial reports from the information recorded by the bookkeeper. The bookkeeper brings the books to the trial balance stage, from which an accountant may prepare financial reports for the organisation, such as the income statement and balance sheet.

[@juliacarter1280]

I am currently an accounting student but I'm looking to start a bookkeeping business in the meantime.

[@FinePointsBookkeeping]

Love this!

[@lesliec3745]

An accountant, controller, CPA, and some CFOs are all accountants with accounting degrees. In the Corporate world, a CPA isn't really a job title. Some accountants pursue this certification to make easier to climb up the Corporate ladder. In the public, CPAs provide tax, audit, assurance, accounting etc services as you mentioned. A Controller is almost the top of the accounting food chain. Controllers oversee accounting departments in a company. And the CFO sets the strategic direction, is in charge of investor relations, advises the CEO on all things that drive profitability etc. Most CFOs have finance degrees but some are accountants as well.

[@LaToshaSLawrence]

As an Accountant with the designated graduate degree, I have earned the right by education to call myself Accountant. With the degree advancing to Controller is a perk of having my degree, I have not yet passed the CPA exam but soon one day to come. The CPA allows you to sign off on audits, speak to the IRS on behalf of the client (same as an EA for taxes) and so much more. As an Accountant I am limited. A bookkeeper does not have the education nor allow for the growth within an organization's accounting dept. Without the education you will remain as a staff level (in large companies). Bookkeepers can work for themselves.

[@FinePointsBookkeeping]

Thank you for sharing your experience with the differences between Bookkeeping and Accounting! Krista (FinePoints Admin)

[@gauravnigam7731]

La tosha, what do you think about future of bookkeepers/accountants in the era of AI? Will they be replaced with software ? And what are positions in this field that won't be replaced ?

[@nospm1244]

Not to be picky, but not all bookkeepers are accountants. The way I see it is that the term accountant is being used once someone has a 3-4 year degree, but not necessarily completed the CPA. Furthermore, there are generally three streams for CPAs: auditing, tax specialists and general accountants which do a little bit of everything. If you are doing this with the intention to work for a bigger company and make decent salary, CPA and either audit or tax specialization is the way to go. For your own small business you will do very well doing bookkeeping and or taxes preparation. It is also interesting that CPA stands for Chartered Professional Accountant in Canada. Cheers.

[@FinePointsBookkeeping]

Hi! Great, points, thanks for the clarification. I love how you described the three types of CPAs!

[@an237251]

I would never call a bookkeeper an accountant because an accountant will usually have broader knowledge on financial accounting, cost accounting, auditing, tax planning, bookkeeping, and how structure a business or series of businesses and many other financial expertise. Bookkeepers usually just know how to categorize items and reconcile accounts.

[@baileamiller862]

Could you do a video about the daily vs. weekly vs. monthly task that you need to do as a bookkeeper? I've watched almost all of your videos but I'm so confused on this point. Do you do an hour a day for each client or bookkeep for a specific client on a specific day?

[@FinePointsBookkeeping]

Hi Bailea! I will let Morgan know this is something you are interested in! Thanks for watching! Krista (FinePoints Admin)

[@JonesDi77]

This is an awesome explanation. I have a Masters in accounting and finance, and consider myself an accountant, although I don’t have the CPA certifications, because my goal was to work in the private sector, rather than the public sector. A lot of bookkeepers actually do the work of an accountant, so, that is where those roles get into a grey area.

[@FinePointsBookkeeping]

Yes, that make sense--thanks for sharing! So true about that grey area.

[@markkile8215]

You are not an accountant unless you pass the uniform CPA exam

[@markwilliams3068]

Controllers and CFOs do not have to be CPAs. Many do, but advanced degrees are common in this space in lieu of a CPA. It really depends on the company and industry. And you touched on it but location will have a huge impact on salary. I am in the DC area which is a high cost of living area. The exact same job in the south or Midwest could be 40% less than what I make here. Great summary of the differences though.

[@samuelrobinson2612]

I agree. Especially in smaller businesses, the controller could be a person who handles AP/AR, bookkeeping, HR, and a myriad of responsibilities, including having people under you. It's kind of like a bridge between bookkeeper and CFO that may or may not require CPA education/certification. In larger companies they can be interim managers between CFO's and CPA's/bookkeepers. That's been my experience.

[@FinePointsBookkeeping]

Good to know, thanks for the distinctions. Controller, for me, is one of the more abstract jobs that I don't have quite a grasp on. Yes, good point on location--you're right, that makes a huge difference.

[@theresacalderon6698]

There is no CPA/Bookkeer. These words are not interchangable.

[@samuelrobinson2612]

@@theresacalderon6698 read it as “CPA’s or bookkeepers”.

[@carlhammill5774]

I have accounting degree & worked in Corp Accounting. I never sat for CPA. We were considered by everyone as Accountants. CPAs are often referred to as CPA

[@FinePointsBookkeeping]

Thanks for sharing! Krista (FinePoints Admin)

[@theresacalderon6698]

The major difference between a bookkeer an Accountant and a CPA is education. A bookkeer requires no formal education only experience, an Accountant requires formal we education and experience and a CPA needs both plus a national license.

[@FinePointsBookkeeping]

Love this description--so concise!

[@markkile8215]

I am a Texas CPA, in Tx you cannot use the term accountant, auditor or accounting in your name Unless you are a real CPA, those terms are reserved exclusively for CPAs, the Texas State Board of Public Accountancy can and will file suit on you if you are not a CPA and use any of those terms in your name.

[@FinePointsBookkeeping]

Thank you for sharing! Krista (FinePoints Assistant)

[@FinePointsBookkeeping]

I have heard this! I think it varies state to state. From, Morgan

[@lesliec3745]

I have to disagree. I am a TX CPA as well. You are an accountant if you have an accounting degree. Perhaps are referring to the name of the business cannot have the word accountant or CPA in it if you are not one. I believe we have a rule against that.

[@theresacalderon6698]

For a bookkeer to say they are Accountants because they don't like their title is nonsense. If you want to be an accountant go and get a bachelor's degree which requires 5 years of grueling studies. The course is tough and not many graduate from the school of accountancy. Check the statistics and you will read of the difficulties students have in that field.

[@FinePointsBookkeeping]

Yes, lots of hard work for the title!

[@darrenc.8663]

Hey, great video. Thx What job title Contains ratio analysis? While this isn’t overall strategy like a CFO, there’s a lot of strategic advice provided. Do you have a video on that? Thx again

[@FinePointsBookkeeping]

Hi Darren! Morgan does not currently have a video on that, but I'll let her know it's something you're interested in learning more about. Thank you! Krista (FinePoints Admin)

[@rufast69]

I am surprised that an Enrolled Agent wasn't mentioned at all.

[@PromoCodeLady]

Your hair color and style in this video is very nice.

[@szim5551]

Nothing wrong being called a bookkeeper. If someone feels insulted by their job title perhaps they need to find a different job.

[@FinePointsBookkeeping]

True, good point! I'm happy to be a bookkeeper. :)

[@RchrzParadox]

Only thing to watch out for is that most states do not allow you to hold yourself out as an “accountant” unless you are a CPA.

[@Vanlife24]

Love you ❤️😘 thanks for information 💞

[@harveypolanski755]

You no longer have to have a certification to be a tax preparer. The courts struck down the ability of the IRS to regulate preparers. You do however need to be licensed to represent a taxpayer in an IRS audit. The easiest way to do this is to get your Enrolled Agent certification. But CPA's and Attorneys can also represent taxpayers.

[@FinePointsBookkeeping]

Thank you for sharing your knowledge on this! Krista (FinePoints Assistant)

[@gauravnigam7731]

Harvey, how is future for EA? One of my friend suggested me this. Who needs them, is it a future safed profession?

[@harveypolanski755]

​@@gauravnigam7731 Right now the demand for tax professionals is high. An EA certification would be useful to show an employer that you know at least the basics of taxation. Also, if you want to represent clients before the IRS it would also be useful. As audit rates will be increasing as the IRS uses the funds congress apportioned it in the Inflation Adjustment Act to hire new agents.

[@christiangrijalva7954]

A financial controller does not need a cpa

[@rickeyhughes1784]

I think you have explained well, in your most recent video, about bookkeeping and accounting. I have been to two business schools, majored in Accounting in both those schools, and graduated from both those schools. And, I also enrolled in a Bookkeeping and Accounting class, wherein one can either get a job in Bookkeeping and Accounting, or start their own business therein. And, upon completion of the class I took, I started my own Bookkeeping and Accounting business at home. So far, I have no college degree; however, all I have gotten were certificates and a diploma. Also, so far, I have worked for two clients, and have one potential client. Although I am self-employed in this business, and have no college degree, do you think I am in the right business when it has to do with what I am doing? My desire is to do my business well without it being a scam to anyone; and at this moment, I am considering doing bookkeeping and accounting for small/minority businesses, although I have a small business, in this sort of work, at home. Please let me know what you think. I look forward to hearing your response. Thank you, so much, for your time and consideration.

[@FinePointsBookkeeping]

Hi Rickey! It sounds like you have some good background, and are taking all of the right steps! I think if you're desire is to have your own bookkeeping business, you can definitely do it! Krista (FinePoints Assistant)

[@rickeyhughes1784]

@@FinePointsBookkeeping Thank you.

[@rachelmiramontes4061]

Hi. Im extremely interested in becoming a bookkeeper. I've been doing A/R & A/P for a construction company for the past 8 years. Is that enough experience to get started? Also, im really glad I found your channel. Love the content

[@FinePointsBookkeeping]

Yeah, I think that's great experience to get you going. I have this chart that helps you along depending on where you're at: Chart: where to start bookkeeping? finepoints.newzenler.com/f/decision-tree-chart

[@rachelmiramontes4061]

@@FinePointsBookkeeping awesome. I also purchased your course. Barely going through the first week.

[@elizabethjuracko1253]

I'm skeptical that you can charge as high as you want for bookkeeping and get it. I imagine there's competition and I imagine being a client, I'd be shopping around looking for the best bargain, not so much top dollar.

[@FinePointsBookkeeping]

Hi Elizabeth! Yes, it will also depend a bit on where you live. There are definitely things that will need to be factored into you setting your price. Krista (FinePoints Admin)

[@universealchemy]

Is there any free legit certificates to get a bookkeeper job?

[@FinePointsBookkeeping]

Hey! Morgan recommends that free ProAdvisor training and certificate through QBO. Here is a video where she explains more about it! (kzbin.info/www/bejne/rnzGdKWEarihY6c) Krista (FinePoints Admin)

[@SoulLove-mu3sf]

Is there a benefit to becoming a certified book keeper

[@FinePointsBookkeeping]

It depends on who you ask. It can be good to gain experience and put on your resume. But, none of my bookkeeping clients have asked about my certification (as they usually don't understand the options).