The field of accounting is part of every business owner’s life. From auditing, bookkeeping etc, accounting is really the language of business. Many business owners have decided that hiring someone from a CPA firm is the best way to manage their never-ending finances.
What is a CPA Firm?
But what is a CPA firm and what does it do? Here are 5 things that you need to know about a CPA firm.
- A CPA firm, or certified public accounting firm, is an organization that must include at least one certified public accountant, licensed in the state where the firm operates. A CPA firm consists of professional individuals in the field of accounting which provides financial and consulting services to individuals, corporations and government agencies. One such example is Affluent CPA, a CPA firm in Rockville, Maryland.
- A CPA firm also provides tax services. For individuals, they offer preparation of federal and state return and also tax liability projections in the coming years. For businesses, CPA firms can file required annual tax returns, assistance in payroll tax calculations and state and local tax requirements.
- CPA firms are also in charge of preparing auditing report for companies. They ensure that all the reports are accurate and they also identify potential errors and search for ways to improve the operations of a business. They also include tests which are used to make sure that the business is in compliance with reporting financial information to tax authorities and other government agencies. CPA firms also review internal employee benefit plans such as 401k plans and health care plans.
- Aside from accounting professionals, CPA firms also provide consultants. These consultants may not hold a CPA status, but they are trained to work with business in areas of valuation, investments, mergers, acquisitions and cost segregation. They can also offer guidance in dealing with investment banks and other capital investment groups. CPA firms also help business owners who are planning their retirement to have a plan for the future.
- In terms of careers, the annual wage of an accountant in 2019 was $61,690. To work for a CPA firm, one must have a bachelor’s degree in accounting or in a related field such as business management and have passes the four parts of the CPA exam. Though being a CPA passer is not required by all CPA firms, it is still recommended for those who want to have a higher income and career promotion.
Required skills to work for a CPA firm
- Problem-solving, analytical and research skills
- Personal skills
- Strong communication skills
- Understand new accounting techniques
- High ethical standards
- Have a strong focus on the client
- Knowledge in marketing
- Have a broad business perspective
As what I’ve mentioned earlier, accounting is the language of business. CPA firm is very important to businesses and companies because they provide all of the things they needed in the field of finance. Aside from being a finance provider, CPA firms are also consultants who are there to help to make an effective business strategy and improve financial errors. CPA firms are not just there to crunch to numbers and do the math- they make every financial management of companies a lot easier and more accurate.