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The differences between tax preparers and certified public accountants can be seen in a few details. Each job has different responsibilities and duties. Additionally, a certified public accountant has an average salary of $76,693, which is higher than the $51,020 average annual salary of a tax preparer.
The top three skills for a tax preparer include customer service, good communication and exceptional client. The most important skills for a certified public accountant are CPA, customer service, and IRS.
| Tax Preparer | Certified Public Accountant | |
| Yearly salary | $51,020 | $76,693 |
| Hourly rate | $24.53 | $36.87 |
| Growth rate | - | 6% |
| Number of jobs | 41,736 | 78,792 |
| Job satisfaction | 3 | - |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 69% |
| Average age | 47 | 44 |
| Years of experience | - | 4 |
A tax preparer is responsible for preparing and processing the tax obligations of an organization. Tax preparers' duties include calculating tax returns, reviewing financial statements and make adjustments as needed, analyzing deductible expenses and credits, and adhering to the tax regulations and legislation procedures at all times. A tax preparer must have excellent knowledge of the tax processes and timely updated with the recent changes and updates within the financial industry. Tax preparers should have impeccable analytical and critical thinking skills to manage account statements for business and individual clients.
A certified public accountant (CPA) acts as an advisor to small businesses and chief financial officers to Fortune 500 companies. They typically work for both small and large public accounting firms. They offer advice on many issues, such as accounting and taxation. They aid businesses and individuals to plan and achieve their financial goals. There are several requirements to become a CPA, including having a degree in accounting, passing the CPA examination, and obtaining a CPA license to practice.
Tax preparers and certified public accountants have different pay scales, as shown below.
| Tax Preparer | Certified Public Accountant | |
| Average salary | $51,020 | $76,693 |
| Salary range | Between $30,000 And $85,000 | Between $49,000 And $119,000 |
| Highest paying City | San Francisco, CA | Washington, DC |
| Highest paying state | Rhode Island | New Jersey |
| Best paying company | Goldman Sachs | Applied Materials |
| Best paying industry | Finance | Finance |
There are a few differences between a tax preparer and a certified public accountant in terms of educational background:
| Tax Preparer | Certified Public Accountant | |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 69% |
| Most common major | Accounting | Accounting |
| Most common college | University of Southern California | University of Pennsylvania |
Here are the differences between tax preparers' and certified public accountants' demographics:
| Tax Preparer | Certified Public Accountant | |
| Average age | 47 | 44 |
| Gender ratio | Male, 28.2% Female, 71.8% | Male, 43.2% Female, 56.8% |
| Race ratio | Black or African American, 10.9% Unknown, 4.1% Hispanic or Latino, 18.1% Asian, 10.3% White, 56.1% American Indian and Alaska Native, 0.6% | Black or African American, 8.5% Unknown, 4.0% Hispanic or Latino, 10.8% Asian, 12.4% White, 64.0% American Indian and Alaska Native, 0.5% |
| LGBT Percentage | 8% | 7% |