Many people assume certified public accountants (CPAs) are just glorified accountants – and in the most simplistic terms that might be a somewhat accurate description. What may not be common knowledge among people who’ve never worked with a CPA is the breadth of the various advisory, consultative and investigatory tasks they perform, and the unique relationships they have with their clients.
In most cases when you hire a service provider, you expect them to do what’s in your best interests. CPAs are often necessary for their trusted prioritization of ethics. They’re after the truth and don’t necessarily want to paint the rosiest picture of your business if it doesn’t reflect reality.
This is often necessary for businesses seeking financing or investors, as those third parties will want assurance that your finances and business stability are what you claim they are. A CPA can help you develop that evidence, and they will stake their reputation on its accuracy.
Auditing is perhaps the most recognized duty of a CPA. In this role, a CPA reviews an organization's financial statements and provides assurance they are accurate and comply with accounting standards. This assurance helps stakeholders trust the financial health and operations of a company.
Taxation is another significant area for CPAs. They not only prepare tax returns for individuals, businesses and non-profits, but they also offer advice on tax strategies. This could involve finding ways to minimize tax liabilities, staying up to date on the latest tax laws or assisting with estate planning.
Many CPAs offer management consulting services. They might be involved in evaluating a company's internal controls, improving operations or assisting with financial strategy. This can also extend to advice on risk management, mergers and acquisitions or implementing new technology.
In cases of financial disputes or suspicions of fraud, a CPA with a specialty in forensic accounting can step in. They analyze financial records to uncover fraudulent activities, assist in legal matters and may even testify as an expert witness in court.
Whether it's for a merger, acquisition or legal reason, understanding the value of a business is crucial. CPAs specialized in this area can determine the economic value of a company using a myriad of techniques and models.
With the digitization of the financial world, many CPAs are now also adept at IT services related to finance. They might assist in implementing financial software (like QuickBooks), making cybersecurity recommendations for financial data or help in developing technology strategies for financial operations.
Businesses operate in a maze of regulations. CPAs help navigate these regulations by ensuring companies comply with financial reporting standards, whether that’s GAAP (Generally Accepted Accounting Principles) in the U.S. or other international standards.
Many CPAs serve as educators, whether as professors in universities or as trainers in corporate settings. They help cultivate the next generation of accountants and keep current professionals updated on the ever-evolving world of finance and accounting.
As businesses become more environmentally conscious, they need expertise in measuring and reporting their environmental impact, from carbon footprints to waste management. CPAs trained in environmental accounting provide this valuable insight, helping businesses align their operations with sustainability goals.
CPAs occupy a unique niche in the financial industry because of their overriding independence. High ethical standards are important in many financial positions – but the focus is usually on doing what’s in the best interest of the client. In many cases, a CPA will need to pursue accuracy over a business’s best interest.
Very few professionals are entrusted with the same responsibilities as a CPA performing audits and forensic accounting. Their standing must remain above reproach for the sake of a host of parties (shareholders, company owners, employees, banks, etc.). It’s vital that the person paying the CPA doesn’t enjoy undue influence over the results of those activities.
At H&H Accounting Services, our team is acutely aware of the importance our clients place in objectivity, transparency and honesty. We’re proud to uphold those values and constantly strive to justify the trust placed in us by our accounting customers.
Are you in need of accounting services from a licensed and qualified CPA? H&H Accounting Services is here to help. Our Phoenix CPA is always ready to meet the accounting needs of local businesses and individuals. Call us at (480) 561-5805 for a free one-hour consultation.
