To answer this question, we must first ask the question, which accounting? Because in our country, the work done by an accounting personnel working within the company and the work done by an independent financial advisor are confused with each other. In general, accounting is an important function that manages the process of recording, classifying, analyzing and reporting the financial transactions of businesses. The main purpose of accounting is to monitor the financial health of a business, assess its financial position, fulfill tax obligations and support management decisions. In Turkey, an in-house accountant and a certified public accountant perform the accounting function in different contexts and there are some differences in their duties.
In-house Accountant:
An in-house accountant is a professional employed within the entity’s own staff. Their duties may include:
- Financial Record Keeping: Dealing with the day-to-day accounting operations of the company, classifying transactions and organizing financial documents.
- Tax Compliance: Preparing invoices correctly in order to prepare tax returns correctly, in some companies, recording invoices, bank statements, etc. in accounting programs.
- Accounting Internal Control: Establishing and monitoring internal control processes,
- Reporting: Providing financial analysis to management and senior executives and providing information about the financial performance of the business.
Certified Public Accountant (CPA):
Certified public accountants are licensed professionals who provide accounting services independently. Their duties may include:
- CPA Services: Auditing the financial accounts of businesses and, where necessary, certifying the reliability of their financial statements.
- Tax Advisory: Assisting businesses in developing tax strategies, providing tax planning and optimized tax strategies. Preparation and submission of tax returns to the Revenue Administration,
- Legal Advisory: Providing legal advice to businesses on financial transactions and ensuring compliance with legal requirements.
- Accounting and Financial Reporting: Organizing the financial accounts of businesses and generating financial reports.
Differences:
- Form of Employment: An in-house accountant is an employee of the business and receives a salary. A certified public accountant works independently and invoices his/her clients according to the tariff given by the Chamber of Public Accountants.
- Areas of Specialization: Certified public accountants provide expertise in a wide range of areas such as accounting, auditing, tax advice, legal advice and business consulting. In-house accountants usually focus on the internal accounting functions of the company.
- Independence: Certified public accountants are more independent when serving different clients. In-house accountants are guided by their employer and are bound by the policies and processes of the business.
Therefore, businesses can choose to work with in-house accountants or public accountants depending on their accounting services needs and budget. Both offer different advantages and areas of expertise.
