July 14, 2024

What Can a CPA Do for Your Business? 

US Individual income tax return. Accountant working with US tax forms

When company owners consider the services that CPAs can provide, tax preparation may be at the top of their list. However, CPAs provide various additional services that are important and can be quite beneficial.

Every small business owner becomes concerned about the tax ramifications of their company, as well as dealing with accounting and other requirements. Attempting to handle these chores alone might lead to inefficiency and confusion. As a result, many people prefer to engage a certified public accountant (CPA) to conduct these responsibilities on your behalf. For more information, speak to a CPA group in Nashville, TN, today. 

What is a CPA? 

CPAs are tax specialists who can help you file your company’s taxes, answer key financial issues, and save money. CPAs have accounting degrees. However, their certification is different from that of ordinary accountants.

CPAs have passed the Uniform CPA Exam, a difficult exam that assesses one’s knowledge of tax law and normal accounting procedures, and has received a state license, including ethical standards. To keep their license, they must complete professional education classes, and they may lose it if they are convicted of fraud, carelessness, or ethics offenses. Furthermore, CPAs have unrestricted representation powers with the IRS and can bargain on your behalf.

Accountant vs. CPA 

A bachelor’s degree in accounting or finance qualifies you as an accountant. A CPA holds a bachelor’s degree but also has extra qualifications.

An accountant must have job experience, pass the Uniform CPA Exam, and fulfill all state licensure criteria to become certified. The exam tests their business, accounting, taxation, and auditing understanding. CPAs are also expected to take continuing education courses throughout their careers to keep current on rules and regulations.

A CPA has a fiduciary obligation to their clients because of this qualification, whereas an accountant does not. This implies that CPAs are legally obligated to operate in the best interests of their customers, but a basic accountant does not.

What does a CPA do? 

CPAs can serve in a variety of roles for your small business. They are in charge of bookkeeping, creating crucial financial documentation (such as tax records and profit-and-loss statements), financial planning, and tax filing.

They may also give excellent financial guidance for your company as it grows, allowing you to focus on operating it. The following are the general tasks of a CPA:

  • Bookkeeping
  • Payroll
  • Forensic Accounting
  • Consulting 
  • Tax and financial compliance 
  • Tax filing, planning, and advice 

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