What Is A CPA And Why Do You Need Them In Your Business?
So you're starting a new business and a lot of people have been asking you who will be your CPA. And you have no idea about what CPA means but you are just too shy to ask "What is a CPA?" Don't worry because this article will enlighten you about a CPA's job, why you need one for your business and their difference from accountants. Buckle up your seatbelt and enjoy reading this article!
Difference of CPAs and Accountants
You might've heard the word "Accountant" already but you are not sure about its difference from CPA. An accountant is a term that is used generally for people who are in charge of finances and taxes. These people are professionals and they studied all the rules and standards that everyone needs to follow.
CPA means Certified Public Accountant and make no mistake of saying that CPAs are just like the usual accountants because they are not just professionals in the finance and tax industry. CPAs are accountants who already passed the licensure exams of a state. This means that they are already familiar with all of the standards and the rules set forth by the government. In short, CPAs already proved their skills and knowledge in their industry by passing the licensure exam and they can give more benefits to your business.
Why Should You Hire A CPA?
1. CPAs are licensed and they are updated with all the laws that you have to follow for your business' taxes. These professionals are experts and they most likely continue to study to meet the requirements of keeping their licenses. There is no doubt that CPAs will push your business to abide by the law at all times because their reputation and their career will depend on it.
2. Are you unsure of the tax laws in your state? Avoid getting in trouble and incurring penalties by having a CPA by your side. In a CPA's licensure exams, tax codes have a big part so this will assure you that your CPA really knows what he or she is doing for your business.
3. Financial analysis is very important. CPAs will analyze your company's balance sheet and other financial statements to give you advice on your tax and finances. Although they might not be the best people for such kinds of advice, their opinions count because after all, they are already experts in this field.
4. Auditing is one of the most crucial parts of your business' financial cycle. CPAs are the appropriate professionals that can represent you in the IRS for your business' audit. This is one of the biggest reasons why you should hire one.
Hiring CPAs may be more expensive than hiring regular accountants but it would surely bring you more benefits because you are working with an expert. Now that you are already aware of the responsibilities and the advantages of a CPA, you can now confidently answer if anyone asks you "What is a CPA?", you can now feel like an expert and not out of placed!