A Certified Public Accountant or CPA is a special type of accountant. Officially it's the title of somebody in the United States, who has passed the Uniform Licensed Public Accounting Examination and has met some additional state schooling and experience requirements to get this certification. This test is grueling and requires upwards of one hundred fifty hours of special education.
But what does this mean to you as a small enterprise owner. Do you want a CPA
or will a regular accountant or even a bookkeeper be enough for what you are promoting?
Most individuals use the time period CPA and accountant interchangeably but there's a very big difference. The CPA designation carries a variety of weight within the monetary community and certainly within the accounting profession.
Companies Provided By Certified Public Accountants
In public accounting, these accounting companies provided to a business on a contract basis, a CPA attests to and offers assurances that monetary statements are reasonable and accurate and adhere to usually accepted accounting principles (GAAP). They also attest to the reasonableness of disclosures and that statements are free from "materials misstatement".
As an auditor, a CPA's are required by professional standards and Federal and State laws to maintain independence from the entity for which they're conducting an audit and evaluate, usually called an attestation.
A CPA may work as a consultant, advising firms on settle forable enterprise practices and making recommendations on financial management. Typically these consultants do not work as auditors for a company at the similar time they are performing as consultants.
As part of the certification, a CPA should complete 40 hours of continuous professional training (CPE) every year to keep up with the new guidelines and laws within the monetary, accounting, and enterprise world. This is proof of the high level of expectations of the accounting profession for a Licensed Public Accountant.
Typically a Certified Public Accountant will belong to a state affiliation with the goal of keeping up to date with the accounting community and taking persevering with education classes. In fact tax laws change often and any good CPA will spend time staying abreast of modifications in monetary areas. As a member of a local affiliation they've access to the latest thinking and rules in the accounting area.
Why You Need A CPA
If for no other reason than Tax Planning it's good to have the advice of an accountant. And so far as enterprise management and monetary advice access to a superb accountant could be very desirable.
However does that imply you want a CPA?
In general you possibly can assume that anyone who has taken the time to get licensed as a CPA, and keep that certification, is on the higher levels of the skin poor health set of an accountant. It is a clear credibility booster to be a CPA. If your corporation can afford one of the best than a CPA is worth the money.
However does that imply they're better than a typical accountant. After all not. However it does point out a level of commitment that's price considering. Actually if legal proceedings are required, the reassurance of a CPA will hold more weight than a typical accountant. Again much will depend on the status of the CPA in the community as well. Certainly an audit by a CPA has an implied level of credibility.
And CPA's do a lot more than audits these days. They provide consulting and overall monetary planning not only for small and enormous businesses but in addition for estate planning, investments, and strategic planning.