There are some things a CPA can do, like certify financial statements if your business is seeking financing, that can’t be done by an unlicensed accountant. On the other hand, there are scenarios in which hiring a CPA to perform a job a non-CPA could do would be a waste of resources. As with many professions, there’s a diversity of specialists and qualifications in accounting. You wouldn’t want a CPA to handle bookkeeping or payroll, but you would need a CPA to represent you before the IRS in the event of an audit.
A Certified Public Accountant is an accountant who has passed the Uniform CPA Examination and met all the other necessary state certification and experience requirements. In Arizona the requirements are:
Arizona does not offer license reciprocity, meaning that CPAs from out of state aren’t licensed here. If you want to work with a CPA in Arizona, it will need to be one who is licensed in Arizona.
Going through all that makes CPAs unique – it’s a huge investment of education and professional time simply to qualify for CPA licensure. This isn’t to say many accountants who haven’t earned their CPAs (or haven’t yet) aren’t qualified accountants – but being a CPA is an indicator of one’s dedication to the craft.
Complex Tax Situations: If you’re dealing with complex tax scenarios, such as owning multiple businesses or properties, inheriting wealth or dealing with international tax issues, a CPA may be better equipped to guide you.
Audits and Legal Matters: If your business is being audited or if there are potential legal implications tied to your financials, a CPA could be more suitable given their training in these areas.
Business Consulting: CPAs often branch out into business consulting, offering advice on business strategy, financial forecasting and more.
Forensic Accounting: If you suspect fraud or any financial irregularities, CPAs who specialize in forensic accounting can be invaluable.
Basic Bookkeeping: For day-to-day record-keeping tasks, paying bills, invoicing and maintaining general ledgers, a regular accountant might be all you need.
Preparing Simple Tax Returns: If you’re an individual with straightforward finances or a small business without complex dealings, a seasoned accountant can prepare and file your taxes without the CPA title.
Budgeting and Financial Analysis: If you simply want to assess your financial health or create a budget, a good accountant should be able to help.
Payroll and Reporting: Handling employee payroll and producing standard financial reports can be accomplished effectively by an accountant.
Hiring a CPA generally costs more than hiring an accountant without the CPA designation. This is due to the specialized training, expertise and certification that comes with being a CPA. Hiring the best in any field comes at an added cost, but there are scenarios in which businesses or individuals require this added level of expertise and accuracy. For things like IRS audits, forensic accounting, tax planning or advising on things like cash flow management, a CPA may either be a necessity or the preferred professional to call.
There are many scenarios in which a CPA’s guidance will pay for itself, especially in an advisory capacity where their guidance could save a business far more in the long run than the initial cost of hiring a CPA.
H&H Accounting Services in Phoenix offers comprehensive accounting services ranging from consulting and audits performed by our CPA to reliable individual and business tax preparation, business bookkeeping and assistance with benefits planning. Whatever accounting or consulting services you or your Phoenix business needs, you can rely on H&H Accounting Services to approach your job with dedication, accuracy and a commitment to the highest ethical standards. Call our team at (480) 561-5805 for a free one-hour initial consultation.
