Hi, I’m Bette Hochberger, CPA, CGMA. Have you ever wondered what a CPA actually does? It’s much more than just taxes; let’s talk about it.
A CPA offers…
1. Tax Expertise:
- Preparation & Filing: CPAs prepare and file federal, state, and local tax returns for individuals, businesses, and other entities, ensuring compliance with all current tax laws.
- Planning & Strategy: They remain updated with changing tax laws to offer valuable advice on tax minimization.
- Representation: They can represent clients before the IRS or other tax authorities.
2. Auditing & Assurance:
- External Audits: CPAs examine financial statements to provide an opinion on their accuracy.
- Internal Audits: By evaluating risk management, governance processes, and controls, CPAs help organizations streamline operations.
- Forensic Audits: CPAs can investigate and rectify financial abnormalities.
- Assurance Services: They work to improve the transparency and reliability of financial information.
3. Business and Financial Advisory:
- Consultations: CPAs help businesses navigate complex challenges, offering advice on risk management, performance improvement, and more.
- Financial Planning: They provide a roadmap for individuals and businesses to achieve their financial goals.
- Management Services: Assisting with internal financial reporting, analysis, and forecasting.
4. Everyday Accounting & Reporting:
- Bookkeeping: Managing accurate financial record-keeping.
- Financial Reporting: Crafting detailed financial reports for decision-making.
- Environmental & International Accounting: Advising on environmental policies or international tax and accounting regulations.
- Mergers & Acquisitions: Offering insights on the financial and tax implications.
- Education & Training: Teaching future professionals and offering seminars for continuous learning.
- Litigation Support: Assisting lawyers in various disputes.
- Estate & Trust Planning: Guiding on estate tax planning and trust matters.
CPAs offer a range of services, from tax guidance and business advice to roles in academia and beyond. Their vast skill set, combined with dedication to ethics, makes them invaluable in the financial world. While CPAs are a crucial resource for tax and financial guidance, the extent of their proactive advice depends on the nature of the engagement. For a harmonious relationship, business owners and CPAs should ensure clear communication and mutual understanding of expectations.
Well, I hope you learned something new today. I’ll see you all next time!