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EA or CPA - Complete Controller

When people talk about tax, they mean two things.  Tax planning (planning transactions before they happen) and tax compliance (filling out forms, applying for credits, calculating, etc.).  There are four choices: EA, CPA, tax attorney, and non-credentialed accountant.  There are differences in what each professional will do for you or your business. Check out America's Best BookkeepersIf you are in the habit of getting your bookkeeping done by a CPA, they offer tax service, and they seem knowledgeable, it probably won’t hurt to have the CPA do your taxes.  They know all your financials anyway, and it’s easier to have it all done by the same person.  For complicated, out-of-the-norm things, though, it might be better to tread with caution.  A CPA who does small business is probably good at things like personal taxes and low business tax compliance.  Any more than that, and it depends on how up-to-date they are in their CPE.

It’s hard to say without knowing what you want your tax person to do.  We’re going to assume that all four are equally competent and ethical.  If you want someone to file your taxes, then the EA or NCA will be more cost-efficient.  (Tax software or doing your taxes is the MOST cost-efficient, but if you’re looking for a tax person, you have already decided you want someone else to do it.) 

If you want to think about a more complicated scenario, then it starts getting a little confused.  Estate planning and need to figure out the most tax-efficient way to pass your millions on to the next generation? Incorporating a partnership?  Dissolving a business? Do you need to be clear what your needs are? Check out America's Best Bookkeepers

EA vs. CPA: A Note

Some of the EAs are accountants that decide to go for an EA exam instead of the CPA exam because they are mostly not interested in auditing and attestation work. They are most often compared to CPAs in terms of experience and knowledge. In addition to this, an EA can be an acceptable substitute for a CPA within an organization’s tax branches.

For all that, though, EAs are looked down upon, because the requirements to sit for the exam are… zero.  If you think you want to take the SEE, go for it; all you need is to be 18 years old!  If you’re going to take the CPA exam, you have to complete specific college or certification courses.

For example, if a person is MS in Accounting and is having over 150 hours of college and graduate education by the time they graduate.  Their graduate GPA is almost 4.0.  However, they are ineligible to sit for the CPA exam because the specific courses they took in college don’t match up to the CPA requirementsCheck out America's Best Bookkeepers

Moreover, they could go to a different state and take the CPA exam there instead. If the CPA is living and working in another country, and they don’t have any interest in audit or attest work, they should get the EA license instead.  If you want to make partner in a firm, you will ultimately have to get the CPA license down the road (legal requirements having to do with firm formation/partner qualifications), and clients respond better to someone with CPA behind their name. 

Last Words

The accountant credential doesn’t necessarily matter, but it’s a useful shorthand for their experience/education/background/training.  Ultimately, choosing a good accountant is like choosing a doctor/lawyer/dentist/any other professional.  Get to know them and what they specialize in or like to do.  Make your choice from there!  Above all, find a financial professional you can trust.  They’re going to know a LOT about some very private details of your life.  Pick an accountant the way you’d pick a reliable partner: think carefully, throw away arbitrary requirements, and go with what works best for YOU.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
hiring a CPA - Complete Controller

Some businesses think that it is expensive to hire an accountant or CPA. However, full-time accounting professionals offer midsize and small businesses a high Return on Investment (ROI). In addition to general accountants, CPA also uses many other hats such as compliance officers, tax advisors, business analysts, budget forecasters, and financial inspectors. Below are ten reasons why companies should hire a CPA:

Reduce costs


Accounting with good value is well correlated to specific areas, products, or services. These specialists regularly analyze economic data and look for places to be cut and wasted. Some examples in this regard are high costs, surplus stocks, and excess staff. Therefore, the cost reduces, and profits increase higher profits. Check out America's Best Bookkeepers

Increase in revenue


All companies rely on stable cash flow in their stores. CPA can help optimize and standardize income sources by improving debt collection, controlling credits, and providing recommendations for intellectual investments. Trained CPA can also check the market price of their product or service and adjust prices to maximize revenue.

Jumpstart stagnant growth


In some countries, companies often experience a slowdown in the first few years. During this “second-year recession,” the use of CPA staff can help the company restructure its debt, identify unprofitable companies, and change the prices of goods and services. CPA has played a significant role in providing management consulting services to improve a sound strategy and return to the growth model. Check out America's Best Bookkeepers

Makes the time Free


Managers and entrepreneurs have a sufficient workload without taking care of compliance, taxes, insurance, wages, rent, and internal control details. People should focus on earning instead of signing checks or preparing budgets. Controllers can perform these essential and time-consuming operational tasks, allowing innovating products, expand the market, establish strategic alliances, and manage changes.

Processing of tax problems


When the business is lean and small, the organization may already be able to manage their annual income and quarterly payments. However, as the company develops, wages and taxes become more complex. There are more variables and rules applicable at local, state, and federal levels. For organizations with an international presence, taxes become even more taxable. T Tax accountants keep pace with legislative changes and help organizations maintain compliance. After learning more about how to minimize deductions and minimize taxes, one can save money. Hiring a good CPA can pay his fees several times. Moreover, if there are any audits or disputes, they will be with the organization.

Regulatory process’s navigation


Taxes governed by government agencies are not the only aspect of any business. Small and big companies face a growing regulatory burden. Only 2% of financial professionals interviewed during the audit meeting for financial reports and functions indicated that the compliance burden would reduce for the next three years. Experienced managers or management consultants can create a system to ensure compliance with the new rules and plans.

Create a forecast


The CPA is trained to analyze large numbers of data series and have recommendations on what managers could expect soon. Regardless of the needs of staff or the attractiveness of investors, qualified accounting specialists can create models and formulate data support forecasts in the next quarter or fiscal year. With better forecasts, one can make better decisions. Check out America's Best Bookkeepers

ROI monitoring


The CPA can calculate the level of marketing success by analyzing the number of new customers and sales data and the total cost of work awareness. Along with this knowledge, the organization would not spend money on constant efforts to increase profits.

Recruitment and training of staff


As the business grows, the organization required to add support staff to manage additional workloads related to calculations, human resources, loans, billing, inventory, and purchases. Controlling and recruiting new accountants or CPA for the company’s growing needs is also a job of control staff. It then presents their new employees with their financial systems and corporate culture.

Consult suppliers


A smart meter can help you get a better price, and you can get a big discount, whether one upgrade IT support or buy in bulk. The financial expert can also examine the various suppliers, receive requests from each supplier, and collect comparisons between apples and apples to make an informed decision.

For companies of any size, the use of CPA in almost all sectors is a wise transfer of funds. When it comes to society, you work hard to create, as you grow up, trying to cope with your financial problems can cost a lot.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
working with a CPA - Complete Controller

Accountants, like CPA’s, are the unsung saints of the private venture world. As per a current report, these numbers of masters are seen as the most imperative experts for entrepreneurs. When maintaining a business, it can be enticing to cut expenses by dealing with the funds yourself. However, doing as such can be a significant misstep. Regardless of whether you’re a CPA or a business owner, getting some outside help is smart. Check out America's Best Bookkeepers

Try not to Skimp on Accounting

 Having a second set of eyes is an excellent method to pinpoint mistakes or find better cost-effective approaches to streamline your business and handle your expenses. Whenever you settle on an outstanding choice regarding choosing the right CPA overhead, first ensure that the numbers add up and are included. Exploit the financial ability of your CPA. There’s nothing more awful than contracting another representative to discover that their pay is demolishing your primary concern. 

Set Data-Driven Goals

By estimating progress in a way that benefits your business, it turns out to be anything but difficult to pinpoint the issue regions in your business. Also, evaluating progress encourages you to get patterns concerning incomes and other expenditures, enabling you to sort out issues before they wind up to become genuine dangers.

A decent bookkeeper like a CPA likewise goes about as a lawful escape clause master. The latter can help your organization skillfully spare the right amount of cash each year. Check out America's Best Bookkeepers

 

CPA’s help in Considering Risks Associated with Each Action

Bookkeepers, like CPA’s, can offer a fair-minded and target perspective of your business. Numerous businesspeople become involved with the extended view thoughts of extension and expanded benefit, and at times disregard the dangers attached to such activities.

Most bookkeepers are, to some degree, excluded from the everyday activities of a business. This exclusion gives them a sweeping viewpoint regarding giving arrangements and direction to the organization’s future. Regardless of whether you handle the more significant part of all the bookkeeping work, it’s imperative to seek help from a CPA and expand the chances of increased productivity. CPA’s are professionals that not only have sufficient financial knowledge but can also assist in the major decision taken by the business owner.

Spare Yourself Time and Energy

Time is money, and bookkeepers will spare you time, cash, and conceivably your rational soundness. There are a variety of obligations and imperatives to confront when starting a new business. Procuring a bookkeeper will take the unpleasant budgetary assignments off your plate. Designating these financial obligations to an expert leaves you with more opportunity to deal with other areas in your business, moving funds in the best option. The errands you might need to assign are those with which you battle (perhaps it’s an excess of math, or only out of your scope of ability) or excessively dull and cause you a considerable measure of pressure. Some of these efficient errands that a CPA can do incorporate making spending plans, following/overseeing stock, paying your staff, invoicing clients, documenting/paying assessments, and agreeing to government directions. That’s only the tip of the iceberg.

Check out America's Best Bookkeepers

Most organizations are low on funding when taking off, so they center around expanding income. For the most part, you need to make the most of the cash to cash dealings.

CPA’s overall prove to be a beneficial investment for a business. They have extensive knowledge of handling the financial matters of an organization or business. Alongside this, they have sufficient work experience due to which they have a vast knowledge of all the success tips that other organizations might be using. They can assist the business in recognizing the mistakes that were made by other companies the CPA has already worked in and create business owners aware of any improvements that can help in improving the business to further extent.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

It can be confusing to distinguish between accounting degrees, and which is best for your career goals. Certified public accountants (CPA) and enrolled agents (EA) are the two well-known degrees for tax professionals. Both are excellent choices; here, we will discuss them in detail.

What is a CPA and an EA?

A certified public accountant (CPA), has passed the CPA exam to be an accounting specialist. They have to take part in state education and also gain work experience to become licensed. One of their main jobs is auditing financial statements. One of the well-known roles of the CPA is tax preparation. They prepare different types of client tax forms, from property taxes to income taxes. They often give advice and strategies to help their clients relieve tax burdens. CPAs can also have roles in consulting, auditing, financial planning, and other accounting services. Check out America's Best Bookkeepers

An enrolled agent (EA), is a federally certified tax practitioner.  They represent taxpayers before the Internal Revenue Service. They also provide tax consultation services and prepare federal and state tax returns. Unlike CPA, the enrolled agent is regulated on the federal level. To become certified, you must pass the three-part EA exam, which covers all the aspects related to taxation.

CPA vs. EA Costs

A lump-sum amount to complete CPA certification includes application cost, exam costs, ethics, and licensing. These costs do not include the cost to achieve a related degree. Mandatory continuous yearly development also comes with a cost. Check out America's Best Bookkeepers

Becoming an EA is much less costly. The exam costs are less than that of the CPA, and though they also have yearly courses, those are less costly than the annual education costs of the CPA.

EA vs. CPA Salary

CPAs earn more than EAs. According to Payscale.com, a CPA earns around $40,000 to $140,000 per year. The enrolled agent earns approximately $30,000 to $75,000 per year.

CPAs also have more earning potential down the road. The EAs peak earning is often flattened out as they progress ahead in their career due to the federal attachment. A CPA can also serve as a CFO in a big multinational company that can take a six-figure salary while the only opportunities for EAs are with the IRS.

EA vs. CPA Career Prospects Check out America's Best Bookkeepers

While enrolled agents mainly focus on tax-related issues, such as tax preparation and tax advisory, CPAs have a greater number of choices in terms of career. They can work for private firms, in the government, or independently.

Enrolled agents can also work for private firms, in the government, or independently. They do have limitations in their career that becoming a CPA eliminates.

If you like working with taxes and manage to keep up to date with the complicated regulations, EA seems to be the ideal choice for you and is less expensive to become than a CPA. It can also allow you to work flexible hours and takes less time to become one.

Becoming a CPA provides a much broader scope of career prospects and also offers better compensation compared to an EA.  There are pluses and minuses to pursuing both careers; you have to decide which one is right for you.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
CPA Certified Public Accountant written in notebook on white table

What is a CPA, and why do we need them? We often hear this question. CPA stands for Certified Public Accountant, and why do we need them; to answer this query, we came up with 15 important reasons that will justify this question.

 

CPA helps you with preparing your taxes, bookkeeping, managing your investments, or if you are trying to save some money, an accountant can help.

 

  1. Planning To Start New Business Venture

If you were planning to start a new business venture, you would need an accountant. There is a lot of paperwork that needs to be taken care of when applying for a business license. CPA ensures that all your taxes are filed accurately. Check out America's Best Bookkeepers

 

  1. Your Investments

You want to invest in the stock market or real estate, but not sure if it would be beneficial. Your accountant is the best person to turn to for financial advice.

 

  1. You Own Properties

Some taxes are specifically for properties, which most of us might not be aware of. If you own a home or plots or any other property, a CPA can help in managing them as well as it will save you from a hassle when filing for a tax.

 

  1. Tax Laws

Keeping track of tax laws is not easy as they change over the period. It is essential to pay attention to these changes, as there might be something important that you do not want to miss out on. A CPA is always up-to-date with these changing tax laws. Their knowledge and practice can help you get tax benefits. If you also want to learn about tax laws, refer to the IRS website.

 

  1. Self-Employment

Most businesses hire an accountant for bookkeeping. If you are self-employed or own a home-based business, you still need an accountant to keep track of all your financial transactions. To avoid any problems with IRS or in your business strategies, your financial expert makes sure your accounts are clear from any debt.

 

  1. Improving Your Credit

Your credit history is the most crucial element of your finances. If you plan to start a business or apply for a loan, the first thing that is checked is your credit history. Paying your bills, loan, or any other financial charges on time helps you maintain your credit. Consult with an accountant on how to improve your credit ratings.

 

  1. Your Income

If your income is more than $200,000 annually, then you may want to hire a CPA as soon as possible. People with this much income are more likely to be audited. You always want to be on a safe side when preparing your tax.

 

  1. You Are Bad With Numbers

Not all of us are good with it, and that is completely fine. Get some expert help to avoid any mistakes. An accountant is a trained expert who can help you in fixing errors and prevent them in the future.

 

  1. You Owe Taxes

You could be in a problem if you owe anything to the IRS. It is high time to contact your CPA for help. He/ She can assist in understanding what you owe and how to avoid any errors in the future. It is not easy to fix tax problems on your own, but a CPA is a professional who tries to make sure problems get fixed in no time. 

 

  1. Saving for Children

As parents, you have to keep your child’s future in mind. If you want to open up a college savings account or want to invest in your child’s future, an accountant can be of help. They have the ideas to increase your money for your family’s future.

 

  1. Various Sources Of Income

Different sources of income mean a separate W-2 to record. An accountant can help you with how to report everything accurately. A small mistake in preparing your tax could lead to a bigger problem. 

 

  1. Save Your Time

If you are managing a business or multiple businesses, you are probably running low on time. If you have no idea what you are working on, you are wasting your time. To avoid any confusion and save some time, get help from a CPA.

 

  1. Reducing Debt

If you are in debt or close to being bankrupt, it is high time to consult an accountant. Your accountant knows how to negotiate with creditors and prevent you from any harassment.

 

  1. Life Transition

Getting married, divorced, retired, or having a child is a significant life change that everyone goes through. As these changes occur, financial transitions also take place. Your accountant will help you in dealing with your financial being.

 

  1. Save Money

The most important reason to get help from a CPA is to save money. Your financial expert knows how to make the right decision when filing for taxes, planning a business, or setting up retirement plans.

 

Filing for taxes, starting a new venture, or saving yourself from financial crises could be challenging. Get professional help to ensure you are on the right path.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

In each business, regardless of how small it is, you require a financial and assessment guide. In any case, your business needs an expert accountant (CPA), not just an ordinary accountant. “Accountant” is a general term referring to finance and tax experts, you can say that all CPAs are accountants, yet not all accountants are Certified Professional Accountants.

CPAs are accountants who pass the authorizing exam in the state. Numerous private projects utilize the management of a CPA, and countless capable accountants are serving small organizations. For a private company, an accountant can fill certain bookkeeping needs as well. Check out America's Best Bookkeepers

 

Benefits of CPA for your business

 

No matter if you have a small or a big business, you need the services of CPA for various reasons:

 

CPA is licensed; accountants are not

A Certified Professional Accountant is authorized by the state and should keep on complying with tax laws so that they have all the information about tax and legislation. Accountants are not authorized. The CPA exam is taken with the help of a thorough procedure for a few days, including numerous parts of financial and tax examination.

Once the Certified Professional Accountants are authorized, they additionally should agree to the fundamentals of tax and finance laws of the state to keep up their licenses; accountants don’t have to do this.

CPA is well-versed with tax law

Although not all Certified Professional Accountants specialize in taxes on small businesses, all the CPAs are well-versed with tax laws more than an accountant. Knowledge of the tax laws is an essential part of the CPA exam, and many CPAs annually take courses on taxation to stay up to date on tax laws. An accountant can also prepare and sign tax declarations. Still, the appointment of an “accountant” does not provide a certification guarantee, nor does it allow representing you to the IRS to an accountant, even if that person signed your tax back. The IRS classifies accountants as “unregistered drafters.”

According to IRS requirements, all tax preparers need to have a taxpayer identification number. The IRS distinguishes between compilers that are registered representatives, CPA or lawyers, and other drafters.

Financial analysis of CPA

Accountants perform routine tasks of entering records (for example, entering business incomes and expenses into the financial program). Accountants are responsible for reviewing this contribution and prepare and analyze financial statements (balance sheet and reporting). On the other hand, CPA’s are responsible for conducting a very detailed analysis and advising on queries related to finance and tax.

CPA can support you in the IRS audit

Probably the most convincing motivation for utilizing a CPA for your business responsibilities is that the Certified Professional Accountants have the privilege to speak to the IRS during the review. In contrast, the accountant does not have this privilege. As noted above, non-CPA accountants can just talk to customers in an extremely restricted manner. If you pay for an expert to do your finance and economic tasks, you must ensure that the accountant has a privilege to speak to the IRS during the financial review and satisfy the requirements for your benefit.

Accountants perform routine work, and they can complete the finance and tax work. At the same time, the CPA can do all the economic work most efficiently, speak to you in an assessment review and enable you to settle on higher business choices and can advise you with the best economic and finance plans. The CPA board is bigger, yet you get what you pay for.

Work with CPA:

If you want to seek help for your small business, get help from a Certified Professional Accountants firm, which incorporates an ordinary accountant and a CPA. At that point, you can isolate more regular financial assignments from the tax and financial investigation made by the CPA. On the other hand, if you want your accounting work done for a small business, you can always contact a CPA. They can assist you with the best financial plans.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

CPA Certified Public Accountant written in notebook on white table
Accounting is most often controlled by a chief accountant; additionally, there is usually an assistant chief accountant and other ordinary accountants. Depending on the size of an organization and its workflow, these posts can be supplemented by others, such as an accountant-auditor and accountant-cashier.

Certified public accounting has generated an interesting, creative and well-paid profession. In most medium-sized organizations, the accounting system is the most important and is mainly divided into bookkeepers and accountants who are responsible for maintaining detailed operational registers. A certified public accountant of the highest qualification is able to decide how the courses should be reported, composed, and how to interpret it. A CPA is responsible for preparing a special assessment, developing and managing traffic information systems, and ensuring its accuracy. The accounting records of many organizations are evaluated by independent accountants and auditors. Bookkeeping is used by CPAs to keep detailed accounting records.

What You Should Pay Attention to in the Accounting Profession

A certified public accountant must be able to independently make decisions, have management experience, and maintain an accounting record in accordance with the criteria of the national legislature and corporate requirements. They should also be able to work with tax consultants and external audit counselors, interact with the business’s management to effectively solve the set of tasks, and much more.

What Does a CPA do?

After becoming a Certified Public Accountant, an accountant is given a higher privilege in the eyes of expert peers, regulators, business contacts, and potential clients. It is because of the fact that a CPA has met the requirements of education and has passed a very tough exam. The designation of a CPA comes under one of the most versatile and highly sought after qualifications of accounting and finance.

What Can a CPA do?

Public accounting consists of an extensive range of auditing, tax, and accounting. In addition to this, it also involves consulting tasks for small businesses, government organizations, and individuals. A proficient public accountant is capable of doing all of these tasks. Moreover, a CPA can perform two tasks that an ordinary accountant without a CPA license cannot:

  • A professional CPA is capable of preparing reviewed or audited economic statements and can file a report with the commission of securities and exchange. Every public organization has to file a reviewed and audited economic statement with the SEC.
  • An expert CPA is able to represent their clients in front of the Internal Revenue Service. However, an ordinary accountant that is a lawyer, an enrolled agent, or a registered agent for a retirement plan is also capable of representing clients.

CPA Firms

A certified public accountant (CPA) at a CPA firm works in one of the following three areas:

Tax Services

Tax services are comprised of filling and preparing state, federal, and local tax revenues as well as working with individuals and companies during the year to minimize tax obligations. A CPA organization can represent their customers in the case of an IRS audit or investigation by country or local tax authorities.

Auditing Services

Auditing services are said to be independent expert services that help improve the context and quality of both non- financial and financial data, especially for decision makers. The audit is an objective assessment of economic and financial data in order to make sure it is accurate and meeting criteria. For example, GAAP (generally accepted accounting principles).

Management Services

Management services are able to provide complete guidance and assistance for managing and supervising a day to day activity of an individual or organization. Management services also provide strategic and long-term planning. These services might include budgeting, management of cash, and economic planning that includes preparation of financial statements, risk and insurance management, and guidance for investment.

Most businesses, particularly big corporations, also seek the help of CPAs for filling the positions of accounting, especially management and other higher level positions.

CPA’s are Experts in the Following Areas

  • Financial reporting and accounting
  • Management accounting
  • Internal audits
  • Tax accounting

Additionally, CPA’s can work for the government by performing financial tasks and audits of government agencies. Moreover, another job opportunity for a CPA is with law enforcement organizations, helping in the investigation of financial offenses or other crimes which leave an economic trail.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Intelligent female businesswoman working on laptop while analysis business strategy and sale performance contract on workplace.
One of the most critical aspects of running any business focuses on managing its finances with the utmost care. If you make mistakes on your tax returns or go over your assigned budget, it does not matter how good your product or service is, as you are likely to get stuck in a tricky situation. Hiring a CPA (Certified Public Accountant) for maintaining healthy financial records, applying for loans, and filing for tax returns is one of the best decisions you can make for your business. The certified accountant will not only manage your documents but will also help you make critical decisions about the future of your business.

Who are CPA’s?

An accountant refers to a person who is well versed in the rules and regulations that comply with GAAP (Generally Accepted Accounting Principles). These rules and standards are set by the FASB (Financial Accounting Standards Board) after considerable thought and accreditation from top finance professionals. A CPA refers to professional accountants who have cleared a licensing state examination to work as an accountant. These individuals have the necessary skills and knowledge to combine with the success of your business. Even small businesses who are considering growth should preferably use their services as they can be a valuable asset to any organization.

Why Hire a CPA?

State-Approved License

A Certified Public Accountant has a state-approved license, which makes them an ideal candidate for managing your needs. They are required to stay up to date with the current tax and accounting laws as the examination is a laborious process spanning over several days. There are many standards that a CPA must follow in order to keep their license. The professionalism and skill set makes them perfect for your business as they are highly capable to efficiently handle complex financial matters concerning your business.

Familiarity with Tax Laws

It is necessary for a CPA to be aware of the tax laws concerning different businesses. No matter what type of business you run, a CPA is well equipped to handle any situation because taxation is an important aspect of their examination. They also have to take yearly tax courses to stay up to date with the current changes in tax laws and regulations.

When filing your tax returns, a professional accountant will ensure that the criteria and standards set by the IRS are properly set. The IRS is smart in distinguishing between taxes filed by a simple accountant or a CPA through their tax identification numbers. Therefore, if you want to offer authentication to your filed documents, it is best to consult a professional.

Financial Analysis

CPAs are well equipped and skilled to perform a detailed financial analysis of your organization. With a professional at your service, you should expect a detailed analysis of your financial reports and cash flows. They will provide you with an honest picture of your current financial standing and are capable of offering advice for the future. Managing your cash in the right way is another important demeanor of success and a CPA is able to do that quite well.

Can Represent You in an IRS Audit

One of the biggest advantages of working with a professional CPA is their ability to represent you in case of an IRS audit. Although their authority in representing you can be quite limited, you can still authorize them to execute claims on your behalf as they are very trustworthy. If you want to grow your business, you should consider hiring the services of a CPA in critical financial matters.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

 

US tax forms background
Preparing for taxes is challenging. If your situation is simple with just one W-2 and some bank or mortgage interests, you may not want to hire a CPA. However, if you have some twist and turns such as how much you earn, you are divorced, or have any retirement plans, you may want to consider hiring a CPA for your tax preparation. Additionally, if you are concerned about your tax preparation, a CPA can advise you and help you prepare everything from scratch.

CPAs can assist you in not only with preparing your taxes, but monetary planning as well… which means their doors are open year round. If you want to invest in your children’s education or start a new venture, they can help you with planning and building strategies per your requirements.

Let’s take a brief look at some complicated situations that benefit from having a CPA in tax preparation.

Earning more than $200,000

Those with high net are more likely to be audited. If you want to avoid facing any problems with the IRS, ask for guidance from a CPA. A CPA can help you with bookkeeping and making sure that you have filed correctly. Therefore, if you are audited, your CPA will represent you and your interests.

Divorced with Children

There could be some advantages and disadvantages in tax consequences when you are divorced and have children. Your CPA can help maximize benefits on both sides. CPAs are not only looking to do your taxes; they also want to help you with an ongoing relationship.

Small Business or Liabilities

There are many different taxes that we may not be aware of. Using his or her skills and experience, a CPA can help you pay the least amount of taxes if you own a business. It is important that you keep track of your monthly and yearly expenses by bookkeeping because, when it is time to do your taxes, it will save you from extra hours of going back and having to organize those things.

Some are more interested in using a tax software as they believe it will save them from paying a huge amount in taxes. However, keep in mind that these software’s cannot handle extremely complex situations. There are numerous other reasons why you need to use a CPA when preparing your taxes if you have a small business or liability.

Licensing and Knowledge

CPAs are licensed by the state. Keep in mind that they are different from an accountant. CPAs pass an exam to maintain their certification. Their responsibility is to keep track of tax laws and, if any changes are made, they share it with their clients.

CPAs are always in a learning process because they have to stay updated with all of the laws (whether it is local, federal, or state). In order to continue their license, they have to take courses/exams on the latest tax policies and run their business according to specific requirements by their state. A CPA’s knowledge and skills help reduce any tax liabilities and guide you on how to save more money for the future.

Record Maintenance

A CPA will keep a record and maintain privacy of your tax information for years. You don’t have to continue maintaining folders for your tax papers, they do it for you. Nowadays, everything has become digital. However, if you want to keep a copy for your own records, a CPA will arrange it for you.

Saves You Time

If you are running multiple businesses or taking care of your home and children and running out of time, these are very good reasons to get a CPA on board. It certainly doesn’t mean that you don’t have to do anything. You just have to share your business details and financial information with your CPA and they will enter it all into the system and file your return. It might be frustrating getting all of the details together in the beginning. But, eventually, it will get better once your CPA understands your business.

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About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Happy businesswoman wearing suit working using a calculator in a desk at office
When becoming a licensed tax professional, most consider choosing among two well-known paths –  CPA (Certified Public Accountant) or EA (Enrolled Agent). Both certifications are great and will assist you in getting a good job, promotions and earning a reasonable income. While you might consider them to be the same, there are some basic difference between the two and you must choose the one that suits you the best.

Difference Between a CPA and EA

CPA – Certified Public Accountant

A Certified Public Accountant is a state level accreditation that is awarded after you complete 150 undergrad hours and a 4-part examination. The four main areas covered in the examination include Auditing and Attestation, Financial Accounting, Business Environment and Concepts, and Reporting and Regulation. It is necessary for every individual to clear all four disciplines before being awarded the certification. Taxation is covered under the Regulations section and is considered an important component of the overall certification. Because the accreditation is state level, you can only practice within a specific jurisdiction. It is vital for a CPA and an EA to keep high ethical standards.

EA – Enrolled Agent

An Enrolled Agent has a federal license, which makes them eligible to represent clients in front of the IRS. Because their license is approved by the IRS, they can work anywhere in the country without any restrictions. They must, however, clear a comprehensive three-part examination that deals with areas like Businesses and Representation as well as Practice and Procedures. Everything about taxes is covered in these subjects. You can also become an enrolling agent if you have worked in the IRS at a position where you had to apply the tax code as part of your job.  The IRS often performs a background check into your personal finances and tax liabilities before granting the license.

The Difference in Career Paths

A CPA and EA have a considerably variant career path as they are required to perform to the best of their skill set. The career choices for a Certified Public Accountant are far greater than an Enrolling Agent as they can work for the government, the private sector, individuals, and other organizations for managing their financial matters as well as tax filing. An EA, on the other hand, is a specialized professional who only deals with issues related to taxes, which results in a limited career path. However, an enrolled agent will take care of tax needs better than anyone else.

The Difference in Amount of Time

It takes around 7-8 years to become a fully functional Certified Public Agent because you are required to complete 150 credit hours before sitting for the exam. In some states, you may have to gain some experience by working under a licensed CPA for a certain period of time. After that, you have 18 months to take the exam, which already has an extremely low pass percentage. Even if you do everything right and do not waste any time, it will still take you around 8 years to become a professional Certified Public Agent.

On the other hand, becoming an EA requires far less effort as you only have to clear the three-part examination. If you have enough experience working with the IRS, you may even be exempted from the examination and given the license directly. However, you will have to provide proof of a proficient record in handling tax-related issues.

The Difference in Salaries

Typically, a CPA would earn more than an EA. However, that entirely depends on where you fall on the career continuum. An enrolling agent with significant experience under their belt could earn more than a Certified Public Agent. However, being CPA offers better career growth and advancements opportunities. The yearly median salary for a professional accountant is close to $62,000, while it is around $49,000 for an agent.

One drawback of being an EA is that the income seems to flatten out once it reaches a certain peak. While, for a public accountant, there is no such limit and they can even become CFO (Chief Financial Officer) of an organization.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.