The CPA designation is a versatile and highly sought-after credential for accountants. For becoming a CPA, you must pass a rigorous examination and a CPA is therefore efficient at performing multiple advanced level accounting operations.
What Can A CPA Do That Any Other Accountant Cannot?
Public accounting includes a wide range of auditing, consultation, tax, and accounting tasks for governments, corporations, non-profits, small businesses, and individuals. Any skilled public accountant can perform most of these tasks. But a CPA can do two things which can’t be performed by any other accountant,
- Preparing reviewed or audited financial statements and then filing a report for the SEC. Every public company is legally required to file audited financial statements with the SEC.
- Representing the clients in front of the IRS. (However, an account without the CPA license can also represent the clients but for that, he/she will need to be also an enrolled agent, attorney, enrolled actuary, or enrolled retirement plan agent.
What Does a CPA do When Working for an Accounting Firm?
When working at an accounting firm, CPAs work in one of the following three domains,
1. Tax services
This includes filing and preparing state, federal, and local tax returns. It involves working with individuals and organizations throughout the fiscal year in order to minimize their tax obligations. In the case of a State hearing or an IRS audit, a CPA firm is also eligible to represent their clients.
2. Audit services
This involves operations which aid in improving the context or quality of both the non-financial and financial information for key decision makers. Auditing is an objective evaluation of economic and financial information to ensure that it meets the criteria of GAAP and is correct & accurate.
3. Management services
These services are provided to assist with the management and supervision of an organization’s day to day operations. It also involves guidance regarding long term and strategic planning. These include budgeting, preparation of the financial statement, risk management, estate planning, cash management, financial planning, insurance coordination, and investment guidance.
How else can CPAs help?
Many businesses, especially industrial titans and large corporations employ CPAs to handle their accounting operation and fill their management and higher level positions. CPAs may work in domains such as financial reporting and accounting, tax accounting, internal auditing, and management accounting.
CPAs also work for government agencies like the IRS and SEC. They help in investigating financial crimes or other crimes involving corroboration of a financial trail. They also perform compliance, financial, and performance audits of companies who do business with the government and of government agencies themselves.
If you are looking to acquire the services of a CPA but cannot manage to find a trustworthy CPA firm then you needn’t worry. Consider acquiring the services of Cartier CPAs. At Cartier CPAs, our goal is to provide clients with the highest level of respect and quality of service. If you would like to request a free consultation or contact us for further inquiries then feel free to do so. We are hoping to hear from you soon.