Accounting firms focus on routine financial tasks such as payroll management, bookkeeping, and preparing financial statements.
Definition of a CPA Firm
CPA firms employ licensed professionals (CPAs) who offer specialized services like tax planning, audits, and forensic accounting.
Qualifications & Expertise
Accounting firms hire bookkeepers and accountants of varying qualifications, while CPA firms only employ licensed CPAs with higher qualifications and ethical standards.
Range of Services
Accounting firms handle basic financial operations; CPA firms offer complex services like audits, economic analysis, and strategic consulting.
Regulation & Standards
Accounting firms follow general accounting principles, whereas CPA firms are heavily regulated by state boards and must adhere to strict standards.
Client Focus
Accounting firms typically serve small businesses needing daily financial management, while CPA firms cater to more complex needs, including large businesses and nonprofits.
Accounting Services
Both types of firms can outsource tasks to improve efficiency, reduce costs, and scale operations without hiring additional staff.
Choosing Between an Accounting or CPA Firm
Choose an accounting firm for routine tasks and lower costs, or a CPA firm for specialized services like audits or strategic financial advice. Hybrid solutions also exist.