Are you looking for accounting service providers to help you with your business or personal taxes? If so, you are bound to run into the term “CPA.” What is a CPA? What Does a CPA Do? That is what you will read about on this blog, and, in the process, understand why these people are the best when it comes to managing taxes and handling personal, as well as business accounts.
So, CPA is the abbreviated term for Certified Public Accountant. It is fundamentally a designation provided by the American Institute of Certified Public Accountants (AICPA). The only way to earn this position is to meet state qualifications and other criteria. Our CPAs at Jarrar & Associates have done the same.
Whether it is about signing tax returns, financial planning, or representing a taxpayer before the IRS for an audit, a CPA plays multiple roles and has many responsibilities.
What Does a CPA Do?
The following section will give you an overview of what a Los Angeles CPA does.
1. Tax Advice and Planning
During an audit, a CPA steps up to represent a client in front of the IRS. They can also answer questions associated with the state or local tax board. Furthermore, they also provide tax advice to reduce tax burden on the clients.
2. Management and Consulting
A CPA can all-inclusively support management operations. Simultaneously, they can take care of different parameters, such as financial planning, budgeting, cash management, etc. They are also in charge of preparing financial statements for all stakeholders. They can even coordinate risk management and help with estate planning.
3. Forensic Accounting
CPAs excel in forensic accounting, which is alternatively called investigative accounting or fraud auditing. What is the role of a CPA in forensic accounting? They examine the books in search of evidence of criminal conduct. They exclusively look for embezzlement or tax evasion. If you have a reason to believe you are being cheated by your business partner or some fraudulent cases, a CPA can help.
Differences Between a CPA and an Accountant
What is a CPA? What does a CPA do? A CPA does a lot more than a tax accountant Los Angeles. Here are a few differences separating CPAs from conventional accountants.
1. Licensing
A CPA has to pass rigorous tests, which is not necessary for an accountant. Anyone aspiring to become a certified public accountant has to pass a comprehensive examination of business, tax, and auditing.
2. Financial Statement Audit
Only CPAs can bear fiduciary responsibility, such as conducting financial statement audits or reviews. A regular accountant cannot conduct such audits.
3. Taxes and Regulations
A small business CPA Los Angeles has extensive knowledge tax codes because of the licensing exam that they have to appear for and pass. Apart from that, they can represent their clients in front of the IRS – something an accountant cannot do.
Other Responsibilities of a CPA
The list of responsibilities of a CPA is exhaustive. If you wish to learn about a CPA’s contribution to the operations of business organizations, check out our blog on The Role of CPA in Improving Your Business Performance.
1. Payroll Administration
A CPA often acts as a payroll administrator. They ensure the team receives timely payment for their services. They also ascertain on-time deduction of payroll taxes, insurance, and retirement withholdings. CPAs can even oversee expense reimbursements or profit-sharing disbursements.
2. Bookkeeping
A CPA can provide bookkeeping services Los Angeles to track the money that is being used for various businesses, whether it is about sending invoices, clearing out bills, or reconciling financial documents.
3.Long-Term Financial Planning
A certified public accountant can manage financial goals, both short and long-term. Our CPAs from Jarrar & Associates can manage the money you have so that you can fulfill your financial objectives.
4. Tax Filing
CPAs can help with tax planning Los Angeles and preparing tax returns. They can also help you a filing extension. CPAs can even ensure your quarterly taxes are filed accurately within the predetermined time, saving you from tax penalties in the process. When you have a CPA on your side, you can forget about facing tax-related issues.
Endnote
What is a CPA? What does a CPA do? This blog has covered all the fundamentals and answered these questions adequately. CPAs play significant roles in the growth of a business because they are adept at handling multiple tasks. Whether you are an individual taxpayer or the owner of a small business or large organization, our CPAs can definitely help you. We work as financial advisors and help you in making crucial financial decisions that can take your company to the next level.
