What Type of Accountant Or Tax Professional Do I Need?

The accounting profession has numerous professionals who specialize in different fields. Similar to the medical field where you have a nurse, general practitioner, and surgeon who specializes in one organ, the accounting profession has their own niche professionals. Let’s quickly break these down:

• CPA – An accountant with a state license who can represent you before the IRS, they have significantly higher rates. CPA’s can write an audited financial statement, understand regulations and can perform same duties as an Enrolled Agent.
  • Most private companies don’t require an annual audit.
• Enrolled Agent (EA) – They are a Federally licensed tax practitioner who can represent you before the IRS, there rates are also high but not as high as a CPA.
  • They interpret tax code, specialize in tax planning, and tax preparation.  Tax law changes daily so they are your tax expert.
• Payroll Accountant – They assist with payroll calculations, deductions, withholdings, and process payroll.  They also prepare tax reports to Federal, State, and local agencies when required. Depending on the company size, this may be outsourced to payroll service providers (ADP, Paychex) as it is very specialized.
• Staff Accountant – They review business finances, book adjusting entries, and provide management a big-picture perspective based on historical data.  They may also review the bookkeeper’s work, and provide an in-depth examination of finances.
  • Depending on the company size this may be your Bookkeeper.
  • They are not tax experts.
• Corporate Financial Analyst – They interpret financials and make future projections.  They also provide financial planning and analysis such as budgeting, forecasting, pricing analysis, project feasibility (lease vs buy etc.).
  • Depending on the company size, this may be your CFO.
• Bookkeeper – They are responsible for accounting data entry. They record when a company receives, pays, or owes money.  The goal is to keep track of the money moving in and out of the business. Additionally, they reconcile financial documents and generate financial statements. They work with your Accountant and Tax professional.
  • Depending on the company size, this may be your Staff Accountant.