What is a CPA (Certified Public Accountant)?

 

A CPA is a certified public accountant who has been issued license by the state. The procedure of earning CPA is different in different states. For example in California, Uniform CPA Exam is to be passed by the individual through which he/she have to demonstrate their competence and knowledge. The individual have to go through the high level educational standards as well as they have to complete a specific amount of general accounting experience.

Where you need an accountant:

 

If you are going to start your own business you certainly have set some goals and objectives. Moreover you have decided the area where to spend and vice versa. One area you might think you can handle yourself, without hiring a CPA, is your accounting. If you have background related to accounting with a strong understanding of business processes, then you may be able to perform accounting duties for your small business. Handling the accounting system incorrectly may hurt your business long term. You may pay more in tax or not be able to obtain a loan due to the lack of using tax accountant.

Is Every Accountant a CPA?

 

Most often the terms accountant and CPAs are interchanged with each other but there is a big difference.

The CPA credential carries considerable weight in finance and business circle. CPAs are the most trusted advisors for the businesses. According to the American Institute of CPA’s (AICPA) more than half of the people rank their CPA just after their family member or spouse. This trust is not surprising as entering and staying in this career is quite strict. While achieving the status of CPA the following qualities are required:

  • Intelligence
  • Integrity
  • Ethics
  • Long life commitment

A CPA – supports business in enormous ways:

 

A CPA is certainly more than a tax accountant. Always ask the CPA you are going to hire about few things:

  • Tax preparation services that he is going to provide you.
  • The fee structure
  • Services to be performed

After considering all the above points you should get relax as the professional you have hired will benefit your business in following manners:

Money saving:

 

Let suppose you have plenty of time and are confident enough to fulfill the forms accurately. Moreover you have a related computer program to help you. What additional tax preparation services you expect from your CPA?

Completing the forms correctly is not the sole job of the tax accountant; yet making them most beneficial in a way to save your money legally is the actual point. A good CPA makes sure that you take advantage of every legal way to reduce your tax liability.

It has been a subject of media that rich people often make the tax payments even less than that their workers pay. Keeping the moral goods and bad aside, thank to their CPAs who always save their money within the limits of law.

Saving time:

 

Time is money and you spend your time in the best way you think. The best way to spend quality time to your business is to get involved in the issues you are good at. As if you are not doing the forms accurately, it will harm your business not only in short but also in long term. The incomplete forms will either be return to you to make them complete or sent back to you through a tax inspector who will investigate every minute detail of your accounts.

Another matter is to submit the complete forms within the due date. You may face heavy fines if the tax papers of your company are not submitted on time.

An expert CPA will complete your papers accurately within the time limits, leaving you relaxed for money making.

Help growing the business:

 

A CPA is the best source of advice to support you in growing the business; as he fulfills the forms accurately within the time limits while providing his best tax preparation services to your business. All these tool help your business to grow more steadily.