Do you know what a CPA can do for your business? Have you been looking for an accountant, but don’t know where to turn or how much it matters? If you are questioning whether hiring a CPA might be right for your company, this guide can help you. Let’s take a look at how your business can improve with a CPA.
To become a CPA, you must pass rigorous course examinations and pass ethical standards. An accountant, on the other hand, does not complete this training. All CPAs are accountants and can do more. However, not all accountants are CPAs, and when you are looking for an accountant you need to consider the benefits of a CPA. CPAs can help organizations of all sizes, from small businesses to large corporations. You will also find them necessary if you are working in a government or non-profit job.
There are two operations that cannot be performed by a regular accountant that a CPA can handle. First, they can examine and prepare financial audit records for the IRS and file a report with the Securities and Exchange Commission. If you are a public company, you must file audited financial materials with the Securities and Exchange Commission. Secondly, they can represent a company or client in front of the IRS. If you started a small business and know little about accounting, you will want to hire a CPA. Unfortunately, this is because many first-time business owners are learning accounting as they go. It can leave you open to a mistake or failure to report something on your taxes. This is not all that CPAs can do.
Not every CPA firm is the same. However, there are some general areas that most firms tackle. A firm usually handles tax services, auditing services, and management services. A firm can help you file federal, local, or state tax returns and records throughout the year. If the IRS decides to audit you, a CPA firm can represent you and your financial records. An external audit done by an outside firm will give you an objective view of finances, assets, and losses. Some firms also work in assurance services which is the interpretation of that data or data you present about your business. They help you make a decision on the company’s needs based on financial statements. Management services allow a firm to examine your day-to-day operations and supervisor roles. They will take an objective look at how you conduct business and how you can improve. Usually, you can decide on an area you would like to focus on or a long term goal for the business. For instance, they could help you plan out how to save money for new facilities or equipment.
Does a CPA really matter if you have an accountant? This is one of the frequently asked questions regarding hiring a CPA when you are a small business. We think the credentials matter. Each CPA has to have a bachelor’s degree, coursework completed in accounting, and must then take the CPA exam. The exam lasts multiple days and has rigorous requirements to meet. They will then receive their CPA license, but that does not mean that they can practice. Each state has other criteria that they then have to complete to be able to practice. However, there are other factors to consider when you hire a CPA other than their certification. They will know not only know how to gather multiple streams of data but also how to interpret that data and explain it. A CPA can help you understand your financial situation. They are masters of problem-solving skills and are experts in communication. CPAs are also held to the highest ethical standards and are severely punished if they are found to be breaking the law. This is due to them having such a high responsibility when handling a company’s finances.
Are you considering hiring a CPA but not sure if it is right for you? Try consulting with one of our representatives today at Scheffield, Trakwell, and Rapp. Our firm is able to help both small businesses and large corporations. Contact us today and let us help you and the success of your business.
STRCPA is available during this tax season to meet your needs. We are available via phone or email. Contact us