What is a CPA (Certified Public Accountant)?

Written by Paayi Finance |01-Aug-2020 | 0 Comments | 497 Views

CPA stands for a certified public accountant. It is a designation given by American Institute of Certified Public Accountants to those candidates who cleared the exam of CPA & meet work experience requirements.

Certified Public Accountant (CPA) works in a firm that is not only restricted to the basic accounting services but carries out complex accounting services as well.

Certified Public Accountant (CPA) firms consist of at least one public accountant who is licensed by the state thus the requirements of different states to appoint public accountants might vary.

Certified Public Accounting firms deal with duties like accounting, auditing, etc. Thus each service provided by the Certified Public Accountant (CPA) would differ from business to business. Some of the services offered by CPA firms are mentioned below:

  • Assurance Services
  • Auditing Services
  • Information Technology Services
  • Forensic Services
  • Environmental Accounting Services
  • International Accounting Services
  • Business Accounting Services
  • Management Accounting Services
  • Tax Planning Services
  • Individual Financing Planning Services

The services offered by CPA firms are highly flexible and tend to take into account businesses and different institutions of every size regardless if whether the company is a small-scale company or a big multinational company.

Businesses are still not sure whether they should use CPA firms or not should look at the benefits that such firms might offer. Here is a list of some of these benefits that can be acquired by the businesses if they hire a proper Certified Public Accountant (CPA) accounting firm:


All Accounting services under one roof

People who often try to find separate accounting services can get all the accounting services under one roof. Moreover, businesses that have hired accountants for their finance department might have limited knowledge and expertise as compared to the people that are working in the CPA firm.

It allows companies to access the team that is highly professional and knowledgeable. Some of the services offered are linked to the development of your budget, consulting services that how the accounts of the company can be managed, credit card processing, etc.


Save your Time and Money

Companies are not aware of the idea that hiring a professional certified public accounting firm can help them save time and money. All your day to day accounting tasks can be managed by the Certified Public Accountant (CPA) firms thus companies can relax that any error might occur by their financial accountants in the finance department.

Moreover, to determine that whether you are saving money or not, you can directly compare the amount of money that has been allocated to your finance department with the amount of money that you are willing to spend to hire a professional and independent Certified Public Accountant (CPA) firm.

Make sure that you include all the elements like payroll of the employees, salaries, etc. so that you can identify the amount of money that can be saved if Certified Public Accountant (CPA) firm is used.


CPA Firms are more reliable and authentic

CPA firms let the businesses exercise more control, as they have to maintain their image in the market. The CPA firm would do your tasks with more sense of responsibility as compared to the individual accountants that are working under you.

Owners of a business cannot continuously monitor the activities of the people under them thus a professional firm would help them to come up with policies that are effective and can have a positive impact on the overall performance of the business.

CPA firms tend to take your interests, preferences, and goals seriously. They can offer the best recommendations to the problems that you might face in your business.

Hence hiring a professional certified public accounting firm or CFA can ensure that the financial operations of your company are conducted smoothly and effectively as they have the required skills and expertise to deal with any situation that they might come across.


Before we know about CPA( Certified Public Accountant )`s, we must understand what an accountant is, their responsibilities and the scope of the field.

‘Recording, reporting, summarizing and interpreting economic data’ are major responsibilities of an accountant. A present accounting system helps and guides them to perform their task. Accounting is a waste field; generally speaking, there are two main categories in which accountants work. One is ‘private accounting,’ and the other is ‘public accounting.’

Private accountants are employees of businesses and work according to their employer’s demands. While on the other hand, a private accountant works independently or in accounting firms, the significant difference is, many rules and regulations set by government apply to them, they have to work accordingly.

CPA`s and accountants do almost the same job, both have to account digress, and both do an accounting of businesses. The significant difference is that CPA`s are certified public accountants other differences are a qualification, work experience and opportunities they get.

For becoming a certified public accountant, one must take the exam of association and pass it. It might be a little hard to become a CPA( Certified Public Accountant ), but once you become a CPA you are distinct from other business professionals, benefits also increase. A CPA might be a financial officer of 500 companies, or maybe he is working in a small business located

A CPA might be a financial officer of 500 companies, or perhaps he is working in a small business located in your neighborhood. Both small and large corporations benefit from their services. Their job is to devise strategies for marketing and takes decisions for current and future challenges.

A Certified public accountant helps small businesses, large businesses and organizations both private and government to set their goals and devise strategies to achieve those goals.


How to become a CPA ( Certified Public Accountant )?

To become a CPA, initially you must hold an accounting degree, and then you have to pass the exams to become a certified public accountant. But it does not end here you have to take more courses every year to hold your license of public accountant.

It might seem hard to become a certified public accountant, but once you have achieved the goal, there is a wide array of opportunities waiting for you.

There are better opportunities for a certified public accountant in comparison to a simple accountant. CPA`s work with intelligence agencies to investigate significant fraud cases and other complicated financial issues.

They work in a wide range of fields, from a startup to a chief financial officer of many companies, from the head of the department of an investigating

CPA`s work with intelligence agencies to investigate significant fraud cases and other complicated economic issues. They work in a wide range of fields, from a startup to the chief financial officer of many companies, from the head of the department of an investigating agency to a small organization.

To become a successful CPA( Certified Public Accountant ) one must hold comprehensive knowledge of their field and understanding of all things related to that area.

Effective leadership and excellent communication skills are plus point professionally for a certified public accountant. You also must know the basic concepts of the business world so that you have a complete understanding of internal and external issues of a business.

To compete with requirements of today` technological world, a CPA must know related computer knowledge and use of related software for data analysis and other purposes.  A CPA must hold good.

A CPA( Certified Public Accountant ) must hold excellent problem-solving skills to solve financial problems. Excellent analytical skills are also required so that, you can analyze the data using different techniques and adopting useful research methodology for an explanation of data and devising strategies. Good report writing skills are also required.

A CPA( Certified Public Accountant ) should be a team player because at many points you will have to work in a team, excellent team building skills will help a lot in the process of working on big projects.

A CPA( Certified Public Accountant ) must also take account of ethical issues, because there may be many things that require being ethically strong. Accounting is a necessary field for business, and there is a broad scope for CPA`s to work in this technological era with the help of different tools.

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