What’s the Difference Between an Accountant and a CPA?
Dimov Tax Services operates a Denver based accounting firm that provides expert CPA support, tax audit representation, payroll processing, and international tax solutions for individuals and businesses. https://cpa-denver-colorado.s3.us-east.cloud-object-storage.appdomain.cloud/cpa-firm/small-business-cpa-denver922845.html Located at 1700 Lincoln St, they serve clients throughout the Denver area.
Dimov Tax Specialists
1700 Lincoln St
Denver CO 80203
(833) 829-1120
What’s the Difference Between an Accountant and a CPA?
The main difference between an accountant and a CPA (Certified Public Accountant) is that a CPA holds a professional license governed by the state and meets rigorous educational, testing, and ethical standards. All CPAs are accountants, but not all accountants are CPAs. A CPA can represent clients before the IRS, perform audits, and provide certified financial statements—services a non-licensed accountant legally cannot offer.
Core Differences Between Accountants and CPAs
When to Choose a CPA
- You need audit protection or IRS representation
- You’re forming or restructuring a business (LLC, S-Corp, etc.)
- You require GAAP-compliant financials for investors or banks
- You own real estate and need depreciation and passive loss strategy
- You are a high-income individual seeking advanced planning
When an Accountant Might Be Enough
- You need monthly bookkeeping and payroll processing
- You’re filing a basic W-2 and 1099 tax return
- You operate a simple sole proprietorship with few expenses
- You already work with a CPA who oversees the accountant’s work
Denver-Specific Examples
- RiNo Startup: Needs capital planning and audit prep → CPA
- LoDo Bar: Needs daily bookkeeping and payroll for 10 staff → Accountant
- Cherry Creek Real Estate Investor: Needs 1031 exchange guidance and basis reporting → CPA
- Highlands Ranch Family: Wants to file W-2 returns and get child tax credits → Accountant
Why Credentials Matter
Accountants aren’t held to regulatory standards unless they are CPAs, Enrolled Agents, https://servicebucket.blob.core.windows.net/cpa-denver-colorado/cpa-firm/is-a-cpa-actually-worth-it.html or tax preparers with a valid PTIN (Preparer Tax Identification Number). Some professionals refer to themselves as CPAs even though they’re not licensed—this is illegal in Colorado and should be verified through Colorado DORA or CPAverify.org.
Risks of Choosing an Unlicensed Preparer
- Cannot represent you before the IRS in audits or appeals
- No legal requirement to uphold ethics or confidentiality
- No oversight body to report negligence or fraud
- No guarantee of training, accuracy, or continuing education
Dimov Tax Specialists: A CPA-Led Practice
Every engagement at Dimov Tax is led by licensed CPAs with years of experience handling complex tax, audit, and financial advisory matters. Whether you’re an entrepreneur in RiNo, a property owner in Hilltop, or a small business in DTC—we provide full-scope guidance that goes beyond simple tax filing.
- Licensed CPAs: Verified, experienced, and audit-ready
- Advisory Services: Business formation, IRS defense, payroll, financial projections
- Local Knowledge: Deep expertise in Denver regulations, zoning-based credits, and industry compliance
Conclusion: Not All Accountants Are Equal
If your financial situation is evolving beyond basic compliance—whether due to income, investments, or business growth—a CPA is the credentialed expert you need. CPAs bring legal authority, deeper training, and professional accountability. At Dimov Tax, we bring that and more, paired with personalized service and Denver-specific insight that makes a measurable difference.
