Do I Need a CPA? What’s The Difference Between a CPA and an Accounting Firm in Austin, TX

If you’re running a business in Austin — regardless of your industry — you’ve probably asked:

“Do I really need a CPA?” or “Isn’t an accounting firm the same thing?”

It’s a smart question, especially in Austin’s fast-growing, highly competitive market. With more and more startups, family-run businesses, and remote-first companies calling Central Texas home, understanding who’s managing your finances — and how well — is more important than ever.

Here’s what every Austin business owner should know about the difference between a CPA and an accounting firm.

What Is a CPA?

A CPA (Certified Public Accountant) is a licensed professional who has passed a rigorous state exam (in this case, the Texas State Board of Public Accountancy) and is required to maintain ongoing education and meet high ethical standards.

But beyond the credentials, a CPA provides far more than tax filing.

In Austin, a CPA can help your business:

  • Navigate federal and state income tax filing
  • Represent you before the IRS or Texas Comptroller
  • Conduct audits, reviews, or agreed-upon procedures (AUPs)
  • Serve as a Fractional or Virtual CFO
  • Improve cash flow, tax efficiency, and financial controls
  • Prepare financials for lending or farm credit requirements
  • A CPA isn’t just a tax preparer — they’re your strategic financial partner.

What Is an Accounting Firm?

An accounting firm typically provides services like bookkeeping, payroll, and basic financial reporting. Many firms in Austin offer these services for local small businesses — but not all have CPAs on staff.

Here’s what an accounting firm (without CPAs) usually handles:

  • Bookkeeping and reconciliations
  • Payroll and contractor payments
  • Sales tax filings (important in Texas)
  • Basic profit & loss reporting
  • Accounts receivable and payable

** While these services are valuable for daily operations, they don’t offer the financial oversight or tax strategy that a CPA does — which can be a real disadvantage when your business grows, undergoes a change, or faces IRS scrutiny.

CPA vs. Accounting Firm: What’s the Difference?

Here’s a simple comparison tailored for Austin business owners:

  • Only CPAs are licensed by the state of Texas.
  • Only CPAs can represent you to the IRS or state agencies.
  • CPAs offer tax strategy — not just prep.
  • CPAs are qualified to conduct audits and financial reviews.
  • CPAs bring CFO-level insight to your business.

If you’re filing federal income taxes, seeking funding, planning growth, or needing help with internal controls — you want a CPA.

When Does an Austin Business Owner Need a CPA?

You should work with a CPA if:

  • You’re a high-growth business looking to optimize tax structure
  • You need to prepare for funding, farm credits, or banking requirements
  • You’re scaling and need CFO-level guidance without the full-time salary
  • You want to reduce your tax liability legally and ethically
  • You’ve received a notice from the IRS or Texas Comptroller
  • You want peace of mind that your financials are accurate, strategic, and audit-ready

Why Work with Our CPA Firm in Austin?

For more than 40 years, our Austin-based CPA firm has served businesses across Central Texas — from downtown tech startups to rural agricultural operations.

We specialize in:

We know the local landscape and the unique challenges Austin-area business owners face.  We’re to help you not only stay compliant, but thrive.

Getting Started

In a city like Austin, where innovation meets tradition and growth is constant, you need more than basic bookkeeping. You need an Austin CPA Firm who understands taxes, strategy, and how to help your business succeed long-term.

Ready to talk about what a CPA can do for your Austin business?

Contact us today to get started.