Tax Preparer or CPA: What’s the Difference?

Tax Preparer or CPA: What’s the Difference?

If you’re looking for providers of tax preparing services to file your income tax return or help you resolve issues, you may find that among the many tax accounting firms in Texas, their services are fronted by either an accountant or a tax preparer.

Is there a difference between the two? And if so, how would you know who is right for you and who to turn to for your tax woes? Here’s a briefer of what each professional can do:

Certified Public Accountant

  • Performs audits
  • Prepares financial statements
  • Performs accounting and bookkeeping services
  • Manages business regulations, licenses, and other requirements
  • Handles tax issues depending on the specialization

Tax Preparer

  • Handles all types of tax issues
  • Does not have the same broad educational background that an accountant has
  • Can apply to become an Enrolled Agent (EA) who can represent taxpayers before the IRS.
  • Can take a number of continuing education hours to be an Annual Filing Season Program Participant

While the differences between the two are clear, it’s important to understand that a CPA does not automatically make for a better tax preparer. Regardless of the profession, one must specialize in tax law to be effective such that tax preparer that has studied tax law extensively will always be a better choice than a CPA who hasn’t.

With these said, you would be happy to know that KF Tax & Accounting, P.C., your trusted provider of tax services in Round Rock, Texas has an A+ BBB Rating as of July 6. 2020, and is headed by both a CPA and an EA.

In any case, exercise caution, research about your tax preparation service provider, and verify with the Better Business Bureau (BBB) to see if your provider is reputable.

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