What is a Certified Public Accountant?

One of the most important parts of running a business is keeping your finances in order. As a result, you need to hire a person – or a team of people – to work with you on your accounting, maintaining financial records, applying for loans, long term planning, and tax filing. But when it comes to choosing the right accountant, it can be difficult to navigate the acronyms and qualifications. Today we’re going to discuss CPAs and what that means!

Certified Public Accountant

What is a Certified Public Accountant?

A CPA is an accounting professional who has passed the CPA exam, and maintains their qualifications to become a licensed CPA. Certified Public Accountants have the ability to act as accounting consultants, auditors, business and financial advisors, tax consultants, and more.

A highly qualified CPA will bring invaluable expertise to your business as accountant and advisor. This frees up your time to focus on other parts of your business.

What is the Difference Between a CPA and an Accountant?

It is important to know that not every accountant is a CPA. Qualifying as a certified public accountant is a higher qualification than your average accountant, requiring the individual to:

  • Pass a number of exams
  • Be a graduate with an appropriate bachelor’s degrees
  • 2-3 years of accounting experience

As a result, a CPA is a highly trained, qualified, and experienced accountant, certified to perform complicated responsibilities and tasks, including tax audits. A CPA needs to be renewed periodically, which ensures the accountant’s expertise and knowledge remains up-to-date.

Is an Accountant the Same as a Bookkeeper

Is an Accountant the Same as a Bookkeeper?

An accountant is not the same thing as a bookkeeper. While people often use the terms interchangeably, they play different – yet still important – roles in a business’ financial management.

A bookkeeper works with short-term finances, while an accountant works with long term finances. Generally, a bookkeeper handles day-to-day expenses, while tax returns and long term financial planning are generally the territory of an accountant. As a result, a bookkeeper’s meticulous records, make an accountant’s work easier when they analyse your finances.

At the end of the day, bookkeepers and accountants are both incredibly important for your business and they work together to ensure a business’ finances are accurate.

What Does a Certified Public Accountant Do?

The most obvious role of a CPA is preparing taxes. While it is possible to do your taxes yourself, business taxes can quickly become complicated and mistakes are easy to make – especially with online sales. A CPA can help you determine deductibles, as well as keeping you tax compliant.

As well as tax, a CPA is an invaluable advisor. They can help you with everything from choosing health insurance policies to advising you through market downturns.

What Should I Ask a CPA

What Should I Ask a CPA?

It is important to make sure that your accountant is readily available and easy to communicate with. You should also check if you are working with the same accountant every time, or if you will be working with other members of the firm.

Ask about their payment structure and what additional fees you might need to pay. Check their rates and how they bill.

You should also clarify exactly what you need your CPA to do and check that they are comfortable and confident supplying what your business needs.

Finally, you should always feel comfortable talking with your accountant. Hiring a CPA is a long term, mutually profitable relationship. So personal chemistry is important. You need to feel comfortable asking them questions and communicating with your CPA in order to get the best for your business.

Siragusa Certified Public Accountants

Are you looking for a CPA? Do you need this valuable resource to help take your business from good to great? From advice on company structure, budgets and benefits to tax preparation and loan applications, Siragusa CPAs are here to help. Contact us today for more information, advice, or to book an appointment!