When you are a business owner, you want to have an accountant that works with you to keep all of your financial records straight and organized. They can also play a large role in helping your make decisions for the future as they offer you a financial forecast to help make an educated decision. However, some business owners will wonder if it is vital that the accountant they work for is a CPA. Since all CPAs are accountants, but not all accountants are CPAs, it’s a valid question. Propel Your Accounting is here to talk about the need for both of these roles and where a CPA might be valuable.
Everyday Workings of an Accountant
As mentioned above, it is vital that a business owner works with an accountant to help them with everyday operations. They help to compile and analyze financial data. You can also rely on your accountant to develop budgets for your business and keep track of any variances from the line items. You can also rely on your accountant to help you prepare your tax return. However, this is where they may have some weaknesses when compared to a CPA.
The Role of a CPA
A CPA is going to do all the same things than an accountant does. The biggest difference is that a CPA can handle more complex matters that tend to arise within businesses. For instance the added education, training and certification of a CPA allows them to represent you in the case that you are audited by the IRS. A CPA can help you manage your money, taxes and investments within the confines of the law and regulations. They will have your growth and success in mind as the work with you.
Is It Necessary to Have an Accountant Who is Also a CPA?
For those individuals that have a high net-worth and business owners, there is a need or both an accountant and a CPA or an accountant with a CPA. An accountant knows how to take care of the daily functions of your business. They help set budgets, monthly goals and will help you keep your financial records in order. However, there are times where the experience and expertise of a CPA is necessary and incredibly beneficial. They help with advanced tax issues, audits, and other miscellaneous tasks that most corporations require.
The Need for a Seasoned Accountant
As a business owner, you need an accountant/CPA that has extensive experience in many financial areas. You want someone that has great critical thinking and math skills. Your accountant should pay attention to detail. Their communication and organization skills need to be there as well. You want your accountant to think with an analytical mind so that they can help navigate you in making wise financial decisions.
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