Your CPA will also keep track of any expense reimbursements or profit-sharing disbursements.ĭo you have accounts receivable that need collecting? Do you need invoices sent out? What about your vendors? Have they all been paid? A CPA is an excellent choice for making sure the bills get paid and the money that customers owe you actually makes it into the bank. Just ask your employees-payroll is a big deal-and it has lots of moving parts! A CPA will make sure your team is paid on time and that all payroll taxes, insurance and retirement withholdings are deducted correctly. ![]() They are trusted advisors, of course, but they can also work as: In addition to those basic accounting functions, a CPA often fulfills other roles at a company. In the unfortunate event that money is disappearing or you think a business partner is ripping you off, a CPA will help you get to the bottom of it.ĭifferent Roles and Responsibilities of a CPA Your CPA will go through the books and sniff out any evidence of criminal conduct like embezzlement or tax evasion. This is also called investigative accounting or fraud auditing. This could include things like budgeting, cash management, financial planning, preparing financial statements for shareholders, coordinating risk management and insurance, providing investment advice and helping with estate planning. This one is often overlooked-a CPA can assist with the supervision or management of a company’s day-to-day financial operations and help provide strategic and long-range planning. CPAs will give you an unbiased report and make sure everything is up to snuff.Īssurance services is just a fancy way of saying that a CPA gathers all of the relevant info that a company’s decision-makers need-and assures that they understand it-so they can make good decisions for the business. In fact, having a CPA audit your business’s finances and economic data is a great way to avoid getting called in front of the Spanish Inquis. They can also give you advice to help minimize your tax burden throughout the year, which helps ensure there won’t be an audit or any questions from the state or local authorities.Ī CPA audit is not the same as getting audited by the IRS. If there’s a problem or an audit, CPAs can represent you in front of the IRS or answer any questions a state or local tax board might have. Beyond just filing returns, CPAs can provide four basic services for a business: And while a CPA can’t make business decisions for you-after all, this is your business, you are the boss, and if your taxes don’t get filed, you will be held responsible-a CPA can offer good advice and help you make the right decisions.įirst things first, CPAs can prepare and file your business’s federal, state and/or local tax returns-that’s their bread and butter. In other words, all CPAs are accountants but not all accountants are CPAs. Got small business tax questions? RamseyTrusted tax pros are an extension of your business. A Certified Public Accountant (CPA) is an accountant who also meets the educational and experience requirements of the state they live in and has passed that state’s Uniform CPA Exam. ![]() They do bookkeeping, financial planning, and prepare financial documents like tax returns and profit-and-loss statements. ![]() So, what does a CPA do exactly? And how can they help your business?Īn accountant is a professional who takes care of all of the boring- um, essential-math tasks that go along with running a business. And this is where a Certified Public Accountant (“CPA” to the cool kids) can help! There’s payroll, sales tax, insurance and a bunch of other things that all need to be accounted for. ![]() But the more success you have, the more complicated it gets. If you’re a business owner who just wants to kill something and drag it home-in other words, grow your business-all that stuff can sometimes just get in the way.īut without good accounting, how will you know if you’re making a profit? If you’re buying a T-shirt for $5 and selling it for $10, the math is easy. There are bills to pay, accounts receivable to collect, and quarterly taxes to estimate. Accounting is such an important part of running a business.
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