A CPA has passed the licensure exams as well as any other state requirements. When the average individual thinks of one, they normally associate this professional with those who do accountants. In actuality, the scope of this profession happens to be much broader and it covers each industry as well as trade. Here are other things that a certified public accountant does:
1. Assurance and attestation – A CPA belonging to a firm usually audits a business’ financial statements. Simply put, the firm provides the public and, of course, individuals who depend on a business’ financial statements, confidence as well as assurance that these financial statements help in the representation of a business’ financial condition. It’s shares similarities to the reasons why you’ll often require a doctor’s physical examination before getting health insurance in that you provide information in order to lessen the risk that your potential insurance provider is going to take.
2. Retirement planning – Putting away a decent amount of cash or money in order for it to hopefully increase in value once you reach the point of retirement is something that many an individual finds a bit daunting. They usually ask something like, “Where should I invest my money?” or “How do I minimize the taxes I’m going to be paying?”, which are questions that a CPA firm can help you answer when you’re planning your retirement.
3. Income tax – Filing tax returns is probably the thing which a CPA firm is known for. However, this isn’t the only aspect of taxation that such a firm concentrates on. Numerous firms work as well as prepare taxes for corporations, partnerships and, of course, individuals. Aside from tax compliance, there are the consultations that happen with various clients. For instance, a firm may help a company plan which country it ought to setup expansions in for them to lower their tax liabilities.
4. Estate planning – Even though nobody likes thinking about death, a CPA firm could help people in planning what they’ll do with the assets once they die for them to minimize the impact of taxes. Besides, even after death, the state still wants those assets taxed. Such a firm could structure estates in such a manner that taxes get lessened, leaving more wealth for the beneficiaries.
There are also other areas wherein a CPA firm can help but the aforementioned services are what’s core to what they offer.