It’s tax time here in the United States. Accountants’ phone lines, email inboxes, mailboxes, and social media pages are filled to the brim with requests for help from people who need their taxes done. Although literally anybody can step up to the plate and offer tax filing services to both individuals and businesses, accountants – specifically Certified Public Accountants (CPA) – are the most qualified professionals for the job. CPAs are also trained and licensed to provide a variety of different services outside of taxes. Let’s take a look at what all Certified Public Accountants do in their lines of work.
Compiling Financial Statements
Financial statements are formal, condensed records of the financial activities of a business for a particular calendar year and the net position of that business at a specific point in time. Many Certified Public Accountants create financial statements and track the source documents for the information that goes on them for a living. Income statements include a company’s revenue, expenses, and net income for a year-long period. Balance sheets indicate how much assets and liabilities companies have on their books at a particular point in time.
Every company based in the United States that trades its stock publicly is required to compile accurate financial statements. They are also required to hire independent, third-party auditors who certify the information contained in such financial statements is legitimate and accurate. The vast majority of auditors are Certified Public Accountants.
Consulting is akin to giving advice. However, experienced accountants with CPA certifications often offer consulting services to businesses that need help setting up their computerized accounting systems. Consulting services also spill over into filing taxes, auditing, and compiling financial statements.
Many accountants are experienced in the rules, laws, and regulations behind mergers and acquisitions and initial public offerings, just to name a few major types of business transactions. CPAs can help structure businesses so that they’re most attractive to potential buyers and investors.
It’s clear that Certified Public Accountants are able to offer a wide variety of services to clients. If you need any of these services, look no further – click here!