Accounting & Bookkeeping & Small Business Forum

[Guest]

Because most people know of the prestige that comes with being a CPA, I'm always first asked if I have that certification. I think for many people, "CPA" equates to knowledge. I am confident about being able to convince people that I have expertise to do the job. However, I have difficulty effectively conveying why a bookkeeper may be a more beneficial way to go for a potential customer. Of course, I make sure to point out the cost-savings. However, I want to be able to give a response with more substance. I've tried saying that the financial statements I prepare are for use by management only and that CPAs are more useful to publicly traded company's as they are responsible for auditing the company's books for potential investors. Am I on the right track? Does anyone else have any suggestions? Any tried and true techniques out there? Thanks.

[Guest]

Hi,

I always tell people that CPA's are only qualified to one things that I am not. They can do Internal Audits. In fact, a 4 or 6 year degree does not prepare you to do a small businesses books. It prepares someone to do work in large corporations. If you received your "PB" designation from taking the Professional Bookkeeping course you can tell them that you have been trained specifically to accounting for small businesses at a much lower price.

[Guest]

Hi!

I am not a student or graduate of UA (yet!) but I have noticed over the years from reading employment ads a disturbing trend and that is every increasing accounting positions that are requiring a CPA designation.

As we all know, a CPA license is only required to audit and certify financial statements for publicly traded companies so as to provide reliable information to the firm's investors and the interested government agencies.

I think there are two forces at work here. The first is from the profession marketing itself as the definitive source of accounting knowledge because there are more CPAs than openings and positions that definitely require their license and expertise so they try to diversify into other related fields including financial planning for instance. The profession also encourages companies to hire CPAs for any "accountant" position even if the license is not required.

Second, in this economy, employers are in the driver's seat so to speak so they will attempt to get what they feel is the very best in the accounting profession and pay the same salaries that non CPAs were earning. If employers know they can get "cheap" labor from highly trained CPAs, they'll go for it. It's also a prestige thing to say that they have x amount of CPAs on staff.

On a side note it is interesting that CPAs are regarded as "tax experts". Well unless one receives extensive training in that field, the mere fact of having a CPA license does not qualify that individual as a tax expert. That field is best served by Enrolled Agents or EAs. They are the only profession licensed by the Federal Government to represent taxpayers before the IRS and can do so in any US territory. And yet, when people think of tax advise, "consult your CPA" is the first thing that comes out of their mouths.

I am not down on CPAs as there is one on UA's staff that I'm certain does a wonderful job of helping students and graduates with their bookkeeping/accounting careers. It's just that misconception that you've experienced yourself the the public believes that only CPAs are qualified to do a company's books.

Hopefully, you and other UA graduates will do a great job of educating prospective clients or employers of the value of the Professional Bookkeeper designation and gain enormous respect from them.

Good luck to you!

Edward Wong