Wednesday, July 17, 2024
Banner Top

CPA stands for a certified public accountant, who manages financial data of a company. He is an accounting professional, who has studied accounts and gained experience in the industry. He has to pass an exam to become a CPA or obtain the certification. If you want to make the financial data of your company streamlined, you must hire a CPA in Southwest Florida. He can also give financial suggestions and advice to the business owner to grow the business and make informed decisions. These professionals can work for companies, non-profit organizations, or independently as per their preferences. 

Difference between an accountant and a CPA

The major difference is the tasks that a CPA can do and an accountant cannot do. They are auditing, signing tax returns, and reviewing the financial data. An accountant can organize the financial data of a company whereas a CPA can perform a number of tasks depending on where he is working. Some of the areas of expertise based on the sector have been discussed below:

Duties of a CPA in a private firm

  • Preparing financial statements
  • Overseeing financial records
  • Ensuring compliance with the tax laws and state laws
  • Cash management
  • Maintaining and reviewing the budget of the company
  • Improving financial management systems 

Duties of a CPA in a public accounting 

  • Financial planning
  • Bookkeeping 
  • Auditing
  • Consulting
  • Preparing financial documents
  • Analyzing budgets

Duties of a CPA in an accounting firm

In an accounting firm, a CPA performs a number of duties. Some of them have been explained below:

  • Consulting services-  In this, he offers consulting services to clients from different industries such as estate planning, litigation services, and forensic accounting.  These services are offered to streamline the financial data of a company as well as understand its requirements.
  • Tax preparation and filing- Accounting firms assist their clients in tax preparation and filing as per state laws. CPAs play a vital role in performing these important tasks so that their clients can be compliant with state laws.
  • Auditing– In an accounting firm, a CPA can audit the financial data of any company and offer server solutions to their clients. 

A CPA is a licensed professional, who has passed rigorous exams, completed minimum education, and gained experience in the industry. Depending on the business type, you should hire this professional and improve the financial health of your company.