You've heard of certified public accountants but you're wondering: "What is a CPA exactly?"
Between the bills to pay and the quarterly taxes to estimate, accounting is an important part of all businesses. However, business owners don't always have the time, energy, or desire to take care of all the paperwork.
That's where a certified public accountant comes in. He or she deals with all your accounting needs to help your business grow.
This guide will review everything you need to know about what certified public accountants do. Read on to learn more about CPA accounting experts and their valuable services!
Definition of a CPA
An accountant is an expert who takes care of everything that involves math in running a business. Accountants deal with financial planning, bookkeeping, and financial documents such as profit-and-loss statements and tax returns.
When it comes to CPAs in particular, they meet the educational and experience requirements of the states they reside in and have passed the CPA exam.
Basically, CPAs are a special kind of accountant with a professional certification. CPAs have privileges that non-certified accountants don't.
They are considered fiduciaries to their clients and can represent them before the IRS in case of an audit.
What Does a Certified Public Accountant Do?
CPAs will prepare and file your company's federal, state, and local tax returns. However, CPA services aren't limited to preparing your taxes.
1. Tax Advice
CPAs can help you all year round devise a tax strategy to minimize your tax burden and maximize your returns.
Additionally, in case of an audit from the IRS, they will represent you and answer any inquiries. However, CPAs also reduce errors so that the chances of an audit from the IRS are drastically lowered.
2. Audit
CPAs can audit your company's finances. Don't worry, a CPA audit has nothing to do with an IRS one.
In fact, getting a CPA audit could help your business stay out of trouble with the IRS and ensure that everything is as it should be.
3. Consulting
CPAs also offer consulting services. They can assist you in managing day-to-day operations and give you strategic input to grow your company.
Consulting could include all financial aspects of your company such as budgeting, financial planning, cash management, risk management, and insurance.
Additionally, they can offer advice when it comes to investing and estate planning.
4. Investigative Accounting
Think there might be something fishy going on in your company? You can call on a CPA to go digging in the books and see if there's any evidence of illegal activities such as tax evasion or embezzlement.
If there's money mysteriously disappearing, a CPA can help you find where the leak is.
Hire a Certified Public Accountant
A certified public accountant is an accountant that has passed the CPA exam and meets all education licensing requirements.
They can prepare and file your tax returns, but that's not all. They can also advise you on the best tax strategy, represent you in case of an audit, and provide you with consulting services.
Most of all, CPAs are there to help you run your business smoothly and allow it to grow.
Want more tips on managing your business finances with a certified public accountant? Visit the Finance section of the Bootstrap Business Blog to learn more about CPA services and accounting expertise during tax time.
