What Can a CPA Do That an Accountant Can't?
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. Located at 1700 Lincoln St, they serve clients throughout the Denver area.
Dimov Tax Specialists
1700 Lincoln St
Denver CO 80203
(833) 829-1120
The Legal Divide Between CPAs and Accountants
If you’ve ever wondered why some financial professionals use the CPA designation and others simply call themselves accountants, the difference is more than academic. Certified Public Accountants (CPAs) are licensed professionals regulated by state boards and held to high legal, ethical, and technical standards.
In Denver, a CPA must be licensed by the Colorado State Board of Accountancy and meet standards established by NASBA (National Association of State Boards of Accountancy). An unlicensed accountant, however, has https://storage.googleapis.com/cpa-denver-colorado/cpa-firm/what-is-an-example-of-a-cpa-ethics-violation.html no formal requirement beyond general accounting knowledge—and is significantly more limited in what they can do.
Key Functions a CPA Can Perform That an Accountant Cannot
Here are specific, legally and professionally exclusive duties CPAs are authorized to perform—and where firms like Dimov Tax Specialists stand apart:
1. Represent Clients Before the IRS
Only CPAs, Enrolled Agents (EAs), and tax attorneys have unlimited representation rights before the IRS. This means a CPA can:
- Respond to IRS letters on your behalf
- Attend IRS audits or appeals
- Negotiate tax settlements, penalty abatements, and payment plans
An accountant cannot speak to the IRS on your behalf unless they also hold one of these credentials. In Denver, where audits spike around small business returns and real estate filings, this protection is invaluable.
2. Sign and File Audit-Ready Financial Statements
Many lenders, investors, and business partners require reviewed or audited financials. CPAs can:
- Prepare and sign audited, reviewed, or compiled financial statements
- Certify financials for SBA loans, real estate financing, and investor reporting
Accountants https://4223199.b-cdn.net/cpa-firm/is-a-cpa-better-than-an-accountant.html without a CPA cannot legally provide these services. If you’re running a business in Cherry Creek or expanding your holdings in Highlands Ranch, audit-ready documentation is often required for growth capital.
3. Provide Attestation and Assurance Services
Attestation is when a professional verifies the accuracy of a financial statement. This includes:
- Audits
- Reviews
- Compilations
Only CPAs are authorized to provide assurance-level services. In Denver’s financial districts like Downtown and Denver Tech Center (DTC), this level of verification is often required by stakeholders and regulatory bodies.
4. Offer Strategic Tax Planning Based on Licensed Knowledge
Dimov CPAs are legally permitted to give forward-looking, actionable tax advice because they maintain a license that includes continuing education and ethics oversight. Examples include:
- Implementing S-Corp election strategies
- Cost segregation for real estate depreciation
- Qualified Business Income (QBI) deductions
- International tax treaty applications
Accountants may assist in data entry and number tracking, but they are not authorized to design advanced strategies involving IRS or Colorado Revenue Department regulations.
5. Represent Clients in International Tax Compliance
Filing for FBAR, FATCA, and foreign tax credits? CPAs can:
- File IRS Form 8938 (FATCA)
- Prepare FBARs for foreign accounts
- Coordinate compliance across jurisdictions
Accountants are often not trained in international tax law. At Dimov Tax Specialists, international compliance is a core offering, particularly valuable for Denver’s globally mobile professionals and expats in areas like RiNo and LoDo.
Regulatory Compliance: The CPA Shield
CPAs operate under strict rules and are subject to professional discipline by state licensing boards. This ensures:
- Higher ethical conduct
- Ongoing education and regulation updates
- Personal accountability for their work
Accountants, by contrast, do not require licensure, and clients may have no clear path to file a complaint or recourse in cases of negligence.
Common Denver Use Cases Where CPA Capability Matters
Denver is home to a diverse economic base—real estate, tech startups, medical practices, and solo freelancers. Here's how CPA-specific capabilities make a difference in key industries and neighborhoods:
- Real Estate CPA Services in Cherry Creek: CPAs help manage depreciation, 1031 exchanges, and property ownership structures
- Tech Startups in RiNo and LoHi: Equity compensation, R&D credits, and GAAP compliance are CPA territory
- Medical Practices in DTC and Highlands Ranch: CPAs help navigate payroll, 401(k) plans, and multi-entity setups
- Freelancers and Contractors in Cap Hill and Five Points: CPAs file Schedule C, home office deductions, and quarterly estimated taxes
CPA Tools That Add More Value Than Accounting Alone
Because CPAs are regulated professionals, they use tools like:
- UltraTax CS and Lacerte for complex tax filing
- Xero and QuickBooks Online for real-time, cloud-based bookkeeping
- SmartVault for secure document transfer and archival
At Dimov Tax Services, clients benefit from these technologies without having to manage them independently, reducing risk and improving efficiency.
Summary Table: CPA vs. Accountant Capabilities
Why Choose Dimov Over a Generic Accounting Provider?
At Dimov Tax Specialists, every client benefits from CPA-level oversight. Whether you’re a small business owner in Lakewood, a high-income earner in Cherry Hills Village, or a property investor in LoDo, Dimov offers:
- IRS audit protection built into every engagement
- Integrated services: bookkeeping, payroll, tax filing, and advisory
- Real-time guidance tailored to your unique structure
- Licensed Denver-based CPAs who understand Colorado-specific regulations
Conclusion: When Only a CPA Will Do
The distinction between an accountant and a CPA isn’t academic—it’s legal, strategic, and critical to your financial well-being. If you're looking for true expertise, protection, and long-term planning, only a CPA can deliver the full suite of support.
And if you're in Denver, there's no better place to start than with the team at Dimov Tax Services—local professionals with global capabilities and neighborhood-level accessibility.