What does a certified public accountant do anyway?
For those wondering what a certified public accountant does, the answer is explained in this article. Certified public accountants (CPAs) are known for their ability to solve business problems, which is precisely what we aim to do for our clients in the cannabis and mushroom spaces.
Since CPAs are generally well-versed in current accounting practices, they can help an organization identify new opportunities and avoid mistakes that might become costly in the future. But some CPA firms are specialized.
For instance, at Northstar, we’re a cannabis accounting firm that specializes in developing marketplaces including but not limited to cannabis and mushrooms. We handle the financial aspect of your operation while you focus on what’s important to your bottom line.
By the end of this article, you’ll know what a CPA does, what CPA accounting is, and the answers to some of the most common certified public accountant questions.
What is CPA Accounting?
CPA accounting is the overall term that refers to the accounting practices developed by our nation’s certified public accountants.
It includes reporting, planning, and analysis of financial data for a company or organization. CPAs are required to sign off on financials in regard to the accuracy of their contents.
But what does a CPA do?
A CPA has extensive knowledge in financial reporting, which means they are able to help companies create reports that make sense for their business purposes.
Certified public accountants can also assist with system design, planning, and analysis. This includes the development of corporate strategies through budgeting processes.
CPAs may spot issues that could influence the company’s performance or take corrective actions to best prepare the company for future outcomes. The goal is to reduce financial risk and volatility, which also protects stakeholders’ investments.
Certified public accountants are able to help companies make informed decisions by offering expert advice based on their understanding of current accounting practices.
Love this post? Make sure to check out our other article about cannabis taxation before you leave!
What else does a CPA do?
As mentioned above, CPAs are experts in financial reporting. This includes reviewing and analyzing a company’s accounting system, as well as preparing and issuing financial statements.
Financial statements provide an overview of a company’s financial position, performance, and cash flow. These are important documents that can be used by investors, lenders, and other stakeholders to make informed decisions about a company.
In order to make sense of the company’s financial statements, a CPA needs to understand how a business operates. In some cases, CPAs may even need to work with management to create new accounting methods.
In addition to reviewing and auditing financial records, they can assist companies in identifying deficiencies or errors within their accounting practices. Often these errors can be avoided if a company follows an established accounting system.
In addition to offering advice on financial matters, CPAs can help companies prepare for tax audits and other compliance issues. They’ll also draft the necessary business filings required by federal, state, and local governments as well as oversee the filing process.
Certified Public Accountant FAQ
What are the duties of a certified public accountant?
A certified public accountant’s main duty is to provide expert accounting advice and guidance to clients or employers. They review financial statements, assess financial risks, and offer recommendations to improve performance.
CPAs may also be responsible for tax preparation and compliance, auditing, and system design.
What is the difference between a certified public accountant and a bookkeeper?
A certified public accountant has a much broader knowledge of accounting and business practices than a bookkeeper. They are also licensed and regulated by the government.
Bookkeepers are responsible for recording financial transactions and preparing financial statements. However, they typically do not have the same level of expertise as a CPA.
What is the difference between a public accountant and a certified public accountant?
The main difference between a CPA and a PA is that a certified public accountant is specialized and certified. While public accounts can be well-trained and experienced, CPAs are even more knowledgeable and have more extensive experience. Public accountants are ideal for handling lower-level accounting tasks. But it’s best to use a CPA for managing high-level responsibilities.
Why use a certified public accountant?
Certified public accountants are the most qualified professionals to handle complex financial tasks. They have a deep understanding of accounting and business practices, as well as the necessary licenses and certifications. CPAs can help companies reduce financial risk, make informed decisions, and improve their performance.
There’s no guesswork involved when you hire a CPA; they understand tax regulations and offer straightforward advice for keeping your operation on the right financial path. CPAs are also usually trained to act on behalf of clients to tax authorities.
Concluding on Certified Public Accountant Duties
CPAs are the most qualified and sought out professionals in the accounting and finance industry. They offer a wealth of knowledge and experience that is beneficial to any business.
From reviewing financial statements and assessing risk, to preparing taxes and overseeing compliance, CPAs are essential members of any team. If you’re looking for expert advice and guidance, a CPA is your best bet.
Looking for the best cannabis CPA firm to handle your company’s financials? Northstar is here to help!
Contact us now to speak with one of our experts and learn how we’ll scale your operation with the financial service your company needs to succeed.