In today’s constantly evolving business world, managing finances is the most complicated task for businesses.
They struggle everywhere, from balancing books to fulfilling complex tax regulations and ensuring sound financial practices in organizations.
This is where you need the expertise of CPAs or Certified Public Accountants to provide invaluable assistance in navigating the complexities of financial management and making sound decisions.
Do you need one in your organization? To know why they are hired in businesses, keep reading this guide.
Table of contents
- What is a certified public accountant?
- How to become a certified public accountant?
- How is hiring CPAs beneficial for your financial success?
- Conclusion
What is a certified public accountant?
A CPA (Certified Public Accountant) is a finance and accounting professional credentialed with certified public accountant certification.
These professionals distinguish themselves from ordinary accountants due to their extensive knowledge, skills, experience, and ethical standards.
CPAs must undergo rigorous training and challenging exams to acquire the license.
Accountants are mandated to follow the professional conduct code by the AICPA. Therefore, you can trust them in business for the level of professionalism they show and expertise.
Business financial management can be tricky without these experts, especially when a company grows. CPAs usually work in public accounting firms, corporate accounting, and government agencies.
If business finances are in a mess, they start looking for the best certified public accountants near me.
How to become a certified public accountant?
If any individual claims to be a certified public accountant, you must ask for their credentials before hiring. An individual who meets the strict requirements of a CPA can only be licensed by the State Board of Accountancy.
Only individuals with this credential have the authority to perform duties like tax preparation, performing government audits, representing clients before the IRS, bookkeeping, and financial management.
Below are a few steps to becoming a public certified accountant.
1. Get a bachelor’s degree
To apply for CPA education, you must earn a bachelor’s degree with at least 150 credit hours of coursework. A major in accounting or business is not necessary, but it is highly recommended.
On the other hand, if you have a major in another subject, you need to complete the minimum account-related credits as mandated by your state accounting board.
2. Consider a graduation degree
Though not mandatory, getting a master’s degree can enhance your chance of passing the CPA exam.
Reports say individuals with a master’s degree have higher rates than those with only a bachelor’s degree in certified public accountant courses.
3. Pass the examination
The AICPA (American Institute of Certified Public Accountants) issues CPA credentials to candidates who pass the examination and fulfill the requirements.
Once your application for the CPA exam is approved by the State Board of Accountancy, they will send you a document called NTS (Notice to Schedule).
This NTS is critical for scheduling your appointment for every section of the CPA exam. After taking the first section of the examination, you will have 15 months to complete three other tests.
4. Obtain and maintain the license
Once you pass the examination, the authority will issue a certificate. However, that is not your license to practice as a CPA in private or government firms.
You must apply for a license after passing the Uniform CPA and Ethics Exam.
The authority will ask you for a fee and to complete a few requirements before sending your license in the mail.
You will need to renew the licenses every 1-2 years according to the state requirements. Additionally, you must continue education courses to maintain your licensure.
How is hiring CPAs beneficial for financial success?
Whenever businesses face difficulty managing their financial affairs, they hire a CPA for financial stability and growth. Listed below are some of the advantages of a CPA in financial success
● Manage financial complexity
Businesses often face financial complexities, especially when they grow or expand.
A CPA can help you with such complex situations, from managing multiple revenue streams to dealing with complex tax regulations and everything in between.
These professionals have the knowledge, skills, and experience to handle complicated financial scenarios. They also help in ensuring accuracy in business accounts and financial reporting.
● Tax planning and strategy
Taxes can take away peace from your life if not done correctly. However, businesses hiring certified public accountants near me can survive the ever-changing tax regulations.
They can ethically reduce business tax liabilities, help prepare tax returns, and submit them before the deadline. In addition, they help you develop effective tax planning strategies and optimize your tax positions.
They also ensure you stay compliant with multiple tax regulations at local, state, and federal levels.
● Audit preparation and representation
Audits can be daunting for most businesses, but you can confidently approach the process with a CPA.
These professionals have expertise in assisting throughout the audit preparation. They ensure your financial records are in place and business processes meet auditing standards.
A CPA deals with the auditor on your behalf and provides necessary documents and explanations in time.
● Business expansion and transactions
Your financial complexity will increase Whenever you plan to expand your business.
A CPA can help you create a proper plan by assessing the business’s financial feasibility for such opportunities.
Additionally, they can conduct due diligence for acquisitions and mergers and offer valuable financial insights for sound decision-making.
Conclusion
In conclusion, we now expect you to understand the certified public accountant’s meaning.
Consider these professionals’ qualifications, licenses, experience, and skills whenever you select them.
Though CPA’s fee may sometimes be expensive, having them at your back can lead to financial success.