Accountants is a general term for people whose type of job mainly involves keeping the financial sanity of an individual, a small business or large industry. Accountants however are divided into three general types.

The first type of accountant is the Certified Public Accountant or CPA. They usually obtain a degree from an accounting school or any academic institution and pass an accounting examination to be licensed. These types of accountants usually work in big accounting firms which cater to big businesses. However, in Australia, CPA stands for “certified practicing accountant” and not necessarily certified public accountants.

The second type of accountants is one who acts more like bookkeepers. They usually do simple accounting and whose clients are individuals or those with small businesses.

The third types are Auditors. Auditors have certified licenses issued only after passing an exam. What separates auditors from CPAs and Bookkeepers is that they keep financial records and examines them for the purpose of determining whether there was fraud committed and the prepares for tax accountabilities.