The Difference Between a Bookkeeper, Accountant, CPA and Tax Attorney

A Bookkeeper

Bookkeepers are responsible for maintaining the financial records of an organization, that is, data regarding sale-purchase and expenses.

All the details stored by the bookkeepers further get used for making balance sheets and statements in organizations.

Requisites for becoming a Bookkeeper

1. One must have a basic knowledge of accounting to sustain this position.
2. Understanding and the use of Microsoft Excel is mandatory; since most of the financial record is stored on Excel spreadsheets.
3. Keeping a record that’s error-free and accurate is crucial for organizations. Therefore it’s needed that bookkeepers are alert and focused in their work.
4. One must be a professional with some expertise and experience in this field of work.

Being a Bookkeeper is a highly responsible job, and there are several skill sets that one must possess in order to acquire this position.

Required Skill Set

1. Data Entry Skills – As the job role of bookkeepers is to record and note down financial data. They must hold data entry skills to document figures carefully and in an orderly manner.
2. Journal Entry Skills – Journal entry skill refers to keeping or making records of any transaction that is either economic or non-economic. And since the job role of bookkeepers calls for people who can maintain financial figures well, they must have journal entry skills.
3. Organization Skills – To work in the utmost mannerly and organized way is the identity of a professional.
4. Adaptability – This skill set proves that a person can change with the changing time and adapt to new methods and techniques present in the work industry.

An Accountant

An Accountant’s role is to elucidate and interpret the financial records in companies and organizations. The work of an account is different from that of a bookkeeper because a bookkeeper is responsible for maintaining records, whereas an account’s job is to comprehend that data.

Requisites for becoming an Accountant

1. Accuracy and focus are a must in accountancy.
2. An accountant must have computer literacy, that is, knowledge of using accounting software on a computer.
3. One more important thing is the understanding of business and its sale-purchase.

Required Skill Set

1. Mathematical Skills – Being an accountant means being good at maths, but that does not include complex mathematics.
2. Communication Skills – Dealing with clients and customers cannot happen without proper communication and interaction. Therefore, the need for good communication.
3. Analytical Skills – An accountant’s job role is to analyze and interpret financial data.

CPA [Certified Public Accountant] 

A Certified Public Accountant is a licensed professional accountant who works as a consultant on taxing and accounting matters. 

The title CPA is more familiar in foreign countries; in India, a Chartered Accountant’s work is similar to that of a CPA.

Requisites for becoming a CPA 

Being a Certified Public Accountant means that you have a license, along with qualifications and knowledge of accounting.

The process of passing the CPA exam and learning accounting education takes around five years to complete.

Required Skill Set

1. Tax Knowledge – Since the laws regarding tax keep changing from time to time, CPAs must know the current tax laws and the ways of implementation.
2. Advising Skills – The work of CPAs is to consult and give advice to various clients and customers.
3. Positivity – Giving financial advice means being a professional and staying positive because this field is a high and low ride with different-different types of alterations and cases in the market.
4. Management Skills – You’re in a position where management and staying organized will make a huge difference in your way of working and your result.

Tax Attorney

The work of a Tax Attorney is to teach and educate clients and customers on various tax laws so that they are able to make appropriate decisions for their businesses.

A tax attorney is somewhat a lawyer who is a tax law specialist and can handle matters regarding taxes and returns.

Requisites of a Tax Attorney

A tax attorney is a licensed worker who needs a bachelor’s degree from law school and a J.D (Juris Doctor).

Required Skill Set

1. Communication Skills – To explain tax laws to clients who have minimal or no knowledge about them requires good communication skills. 
2. Problem-Solving Skills – In the field of finances, there are many types of problems and issues, and a tax attorney must be capable of facing them and finding alternative solutions.
3. Analytical Skills – This profession demands one to have the ability to analyze, understand, and gather information carefully.

All four fields of work explained here have differences in their required skillset and job role. We hope that after reading this blog, you are able to understand the differences. 

We end our blog here and hope that you found it informational and educational.

Thank You!