If you're looking for a professional with experience and training in taxes, a Certified Tax Accountant (CTA) is an excellent choice. A CTA works with clients providing tax consulting services to prepare their returns, but also provides guidance for managing their finances and making smart business decisions. A Certified Public Accountant (CPA) has similar responsibilities to a CTA but generally focuses on tax preparation rather than financial planning or management skills.
Certified Tax Accountant (CTA)
Certified Tax Accountants (CTA) are tax accountants who have passed the CPA exam. They're trained in tax laws, tax planning, and tax compliance. CTA's work with individuals, businesses, and corporations to help them file taxes.
CTAs are licensed by the state and have a minimum of two years of experience. They work in public accounting firms, financial advisory firms, and law firms. Some CTAs also work in-house at corporations or government agencies.
Public Accountant (CPA)
A CPA is a licensed professional who has met education and training requirements and passed an exam. The license to practice requires continuing education and passing the Uniform CPA Examination (UCPE).
A public accountant can help you with your taxes, but only if you have earned the designation as an "accredited" CPA firm by passing certain tests and completing certain educational requirements. To be accredited, a firm must have at least three partners who are certified public accountants (CPAs), each of whom has been working for at least five years in that firm before applying for the accreditation process; all employees must also be certified by their state societies or similar organizations within their country of operation, providing them with access to valuable resources such as journals and books on accounting topics that may not otherwise be available locally; finally, they must meet all other minimum standards set forth by each state society or similar organization within its jurisdiction in order to maintain this status regionally
Qualifications and Training
The CPA is a professional who has passed the Uniform CPA Examination, which tests their knowledge of accounting, taxation, and auditing. The CTA or a business tax consultant must pass an exam as well (the Uniform Taxation Examination), but it also requires the completion of a certain number of hours of training.
The difference is that while both must pass exams to practice their profession, the CPA has more specific training in tax law and tax preparation: they must take classes on business ethics, government regulations, and international tax issues before they can sit for their exam, whereas with CTAs you don't need any prerequisites beyond experience or education before sitting down at your desk every day!
Certification vs. Licensing
A Certified Tax Accountant (CTA) is a professional who has passed an examination administered by the American Institute of Certified Public Accountants (AICPA) and provides tax consulting services. CTAs are trained in tax law and taxation, as well as auditing, accounting, business law, and ethics. CPAs are licensed by the state in which they practice. Both parties must meet certain educational requirements to become certified or licensed; however, CTAs have more specific training than CPAs when it comes to specialized areas such as international tax preparation or estate planning for small businesses.
Both CPAs and CTAs are qualified professionals with extensive training.
In addition to the standard requirements for becoming a CPA or CTA, some additional education is required for each professional:
- Certified Tax Accountant (CTA) - The Certified Tax Accountant (CTA) credential is earned through an advanced degree program that takes about three years to complete. During this period, you'll also need to take courses on tax law and related topics such as accounting principles, financial reporting standards, and auditing procedures.
- Certified Public Accountant (CPA) - The CPA designation requires completion of an undergraduate bachelor’s degree at an accredited college/university followed by two years of postgraduate study leading up to passing the Uniform CPA Examination given by the American Institute of Certified Public Accountants (AICPA).
Conclusion
While both CPAs and CTAs are qualified professionals with extensive training, they diverge when it comes to certification or licensing. This difference has relevance in regard to their responsibilities as professionals and their duties to clients. For example, one significant difference between these professions consists in the number of hours needed for education, experience, etc., for a certified professional (CP) versus those required for licensure (LL). The requirement for licensure sets forth different requirements compared to certificates from organizations such as the AICPA or ICC.
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