Why It’s Important To Hire A CPA For Your Company

published on: November 30, 2023 last updated on: December 1, 2023
Hire A CPA For Your Company

Hiring an accountant for your business is important and can help set the path to fiscal success. The discussion of the CPAs’ is quite pertinent in this particular ambiance. If you are facing accounting management-related difficulties, then you must go on to hire a CPA. 

Having a professional to assist us at this stage can make the difference between a successful decision or not. One of the most reliable options is Evans Sternau, a Houston outsourced accounting firm of committed CPAs and accountants that focuses on providing customer service strategies and resolving industry challenges.

But, let’s start at the beginning. What is a CPA?

CPA stands for Certified Public Accountant and is a title granted to accountants who have passed the Uniform Certified Public Accountant Examination and met certain education and prior work experience requirements.

The Roles And Responsibilities Of The CPA 

Their main job is to be trusted consultants who provide support in financial planning and goal achievement. However, be aware that a CPA is different from an accountant. There are specific tasks that an accountant cannot perform, but a CPA can.

Hence, you can easily point out the positive role played by the CPA in maintaining the company’s overall health. The business organization takes the help and assistance of the CPA so that they can chalk out their growth strategy. Other than the roles, these professionals have some of the most important responsibilities: 

  • They Prepare and analyze the reports on transactions.
  • They perform regular, detailed audits so that they ensure accuracy in maintaining the expenditures and other financial documents.
  • They are responsible for drawing information by analyzing the various reports and transactions. 
  • Again, they organize and update the accounting records as and when required. 

These roles and responsibilities make them the most sought-after individuals in the business circle. So you must take the initiative to hire A CPA.

What’s The Difference Between An Accountant, A Bookkeeper, And A CPA?

While all three work in the field of accounting, the difference in these roles lies in the academic preparation each receives.

While it’s true that a bookkeeper doesn’t require a college degree, an accountant must be a professional, whereas a CPA, in addition to a degree, needs to pass a special Certified Public Accountant program and renew that certification every two years. Industry experts look to hire a CPA. 

The Bookkeeper

The bookkeeper is responsible for tracking the financial transactions of a company. These services include recording incoming and outgoing money, such as customer payments and payments to suppliers.

Other tasks include recording transactions, gathering and organizing financial records, cash flow statements, bank documents, and profit and loss statements. 

A bookkeeper is a technician who can work independently in small businesses or be permanently employed by a company. 

The Accountant

An accountant is a professional who holds a bachelor’s degree in accounting. They can work for individuals and offer their services in positions such as financial accountants or assistant auditors to a Certified Public Accountant. Why not hire a CPA?

Their role involves manual entry of financial records, developing financial reports, reviewing payroll payments and accounts, and participating in finance and collection meetings.

The Certified Public Accountant (CPA)

A CPA is a professional who has passed the Certified Public Accountant exam. Additionally, they must be knowledgeable about all government laws and renew their certification every two years.

These professionals can conduct financial and tax audits, maintain balance sheets, and provide services to corporations and nonprofit organizations.

In recent years, business owners have leaned towards hiring CPAs more than accountants due to their additional training and certification. Here are the key benefits of hiring a CPA.

Certified Professional

A CPA goes through several complex stages and lengthy procedures. A certified public accountant has met certain education, exam, and experience requirements for licensure by a state board of accountancy. 

To become a CPA, you’ll need to pass an exam that demonstrates you have mastered the technical skills necessary to provide services for financial accounting, financial reporting, auditing, attestation, regulations, business environments, and business concepts, making them more capable to assess and deal with any kind of financial adversity.

Hire A CPA That Provides Detailed Financial Information

A CPA is an enhanced version of an accountant, as they perform all the tasks accountants do but in a more comprehensive manner. They report expenses, income, rents, taxes, accounts payable, and all business-related information with detailed financial reports. These professionals facilitate descriptive accounting records and provide a detailed financial overview. CPAs also offer advice on appropriate measures to overcome challenges.

Acts As Representative Of Your Company

Only a CPA, an enrolled agent, or a lawyer can act as a representative for companies to address their financial activities in front of the IRS. They can skillfully handle audits and matters related to finances during inspections by this agency.

When To Hire A CPA

Before starting your business: Spending a few hundred dollars for a couple of hours with a CPA when starting a business may seem costly, but it’s an investment and is deductible, like many other initial expenses.

Tax time: Hiring a CPA at this stage can reduce the hassle of preparing tax forms and filing returns. Moreover, CPAs can defend you if the IRS questions your return or when your company is under audit, which is a crucial factor to consider.

When acquiring, merging, selling, or closing: when making significant structural or operational adjustments to your business, such as buying a company, merging with another, attempting to sell or close your business, choosing to hire a new partner, or deciding to dissolve a partnership; you should consult with a CPA about the tax implications for both your business and yourself.

Certified Public Accountants are experts who provide a range of accounting services to multiple clients in various specialized industries.

Hiring a CPA for a small business will alleviate stress from situations that can be managed with experience. It’s a good choice, especially for a growing business.

In this regard, working closely with a proactive CPA who advises companies on how to structure their strategy will be crucial for its success. Some of them, like Evans Sternau, offer comprehensive services that allow you to take the next step with confidence and with the least possible risks.

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Mony Shah

With an adept skill of curating content on multiple genres, Mony has harnessed success as a Content Writer quickly. Find her sharing profound thoughts and opinions on finance, insurance and lifestyle niches.

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