What Is a Certified Public Accountant (CPA)?
A Certified Public Accountant (CPA) is a professional who has passed the Uniform CPA Examination and has been licensed by their state board of accountancy.
CPAs are certified to provide attest, taxation, and consulting services to individuals, businesses, and other organizations.
What Does a Certified Public Accountant Do?
The primary role of a CPA is to provide attest services. Attest services involve expressing an opinion on the fairness of financial statements.
This opinion is expressed in the form of a report issued by the CPA. To provide an attestation service, the CPA must have sufficient knowledge about the organization's business and industry.
In addition to providing attest services, CPAs also provide tax and consulting services.
Tax services involve the preparation of federal, state, and local tax returns.
Consulting services involve providing advice on a variety of business and financial issues.
CPAs may also provide other services, such as financial planning and management consulting.
How to Become a Certified Public Accountant
To become a CPA, you must earn a bachelor's degree in accounting from an accredited college or university.
You must pass the Uniform CPA Examination, administered by the American Institute of Certified Public Accountants (AICPA).
After passing the exam, you must be licensed by your state board of accountancy.
To maintain your license, you must complete continuing education requirements.
Certified Public Accountant's Code of Ethics
A code of ethics binds all CPAs. The AICPA's Code of Professional Conduct is the primary source of ethical guidance for CPAs.
The code contains principles that address various topics, such as integrity, objectivity, and professional competence.
CPAs who violate the code of ethics may be subject to disciplinary action. An example of a violation would be if a CPA were to accept a bribe. The disciplinary action could range from a warning to the revocation of the CPA's license.
How Can a Certified Public Accountant Help Businesses?
Certified public accountants can help businesses in several ways. They can provide attest services, which give businesses an objective opinion on their financial statements.
They can also provide tax services, which can help businesses save money on their taxes.
In addition, CPAs can provide consulting services on a variety of business and financial issues.
Benefits of Hiring a Certified Public Accountant
There are several benefits of hiring a certified public accountant.
First, CPAs have the necessary education and experience to provide high-quality services.
Second, CPAs are bound by a code of ethics, ensuring that they will act ethically.
Third, CPAs can help businesses save money on their taxes.
Fourth, CPAs can provide valuable advice on a variety of business and financial issues.
Hiring a CPA is an important decision that should not be taken lightly.
Before hiring a CPA, you should interview several candidates to find the one that best meets your needs. You should also verify that the CPA is licensed in your state.
CPA vs CMA
There often needs to be more clarity between the roles of CPAs and CMAs. A Certified Management Accountant (CMA) is a professional who has passed the CMA Exam and has been certified by the Institute of Management Accountants (IMA).
Unlike CPAs, CMAs are not licensed to provide attest services. However, they can provide other services, such as tax preparation and consult. In addition, CMAs are not bound by a code of ethics.
The Bottom Line
A certified public accountant is a professional who has earned a bachelor's degree in accounting and has passed the Uniform CPA Examination.
CPAs are licensed by state accountancy boards and bound by a code of ethics. They provide various services, such as attest, tax, and consulting.
FAQs
1. What is a certified public accountant?
A certified public accountant (CPA) is a professional who has earned a bachelor's degree in accounting and has passed the Uniform CPA Examination. CPAs are licensed by state accountancy boards and bound by a code of ethics. They provide various services, such as attest, tax, and consulting.
2. How do I become a certified public accountant?
To become a CPA, you must earn a bachelor's degree in accounting from an accredited college or university. You must pass the Uniform CPA Examination, administered by the American Institute of Certified Public Accountants (AICPA). After passing the exam, you must be licensed by your state board of accountancy.
3. What are the duties of a certified public accountant?
The duties of a CPA vary depending on the type of work they are performing. However, some everyday responsibilities include preparing and examining financial statements, providing tax advice, and consulting on business and financial issues.
4. What are the benefits of hiring a certified public accountant?
There are several benefits of hiring a CPA, such as their experience and education, code of ethics, ability to save businesses money on taxes, and valuable advice on business and financial issues.
5. What is the difference between a CPA and a CMA?
A Certified Management Accountant (CMA) is a professional who has passed the CMA Exam and has been certified by the Institute of Management Accountants (IMA). Unlike CPAs, CMAs are not licensed to provide attest services. However, they can provide other services, such as tax preparation and consult. In addition, CMAs are not bound by a code of ethics.
