What is a Certified Business Accountant?
Certified Business Accountant
A certified business accountant offers several services to a business beyond bookkeeping and accounting. You can perform these tasks by yourself as a business owner as well. However, certain financial services require special skills and expertise.
Let us guide you on how to hire a professional and certified business accountant.
What is a Certified Business Accountant?
A certified business accountant is a professional with a chartered or certified public accounting certificate. A certified body such as AICPA awards the certified public accountant’s license. Certified accountants need to pass the exam and complete experience requirements to obtain the certification.
A certified accountant such as a CPA is a qualified professional offering a wide range of services. These services can range from accounting, auditing, tax planning, and business consultation.
How is a Certified Business Accountant Different from an Accountant?
An accountant can perform all the bookkeeping and accounting tasks that a business requires. These tasks can range from bookkeeping, tax preparation, tax filing, financial statements, and accounting reviews.
A certified accountant on the other hand is a qualified professional with the ability to offer more than an accountant offers. A CPA can offer business consultation, transaction advisory, tax planning, estate planning, mergers and acquisition, business valuations, and tax representation to name a few key services.
A key difference between the two is the IRS audit representation too. A certified accountant can represent your business with unlimited representation rights.
How to Hire the Right CPA for your Business?
Hiring the right certified accountant can be a pivotal decision for your business. Outsourcing accounting and finance services is an important decision that will eventually affect your business in the long run.
Here are a few key aspects to consider when you hire a professional and certified accountant for your business.
Services Offered
That’s the first question that you should ask your outsourcing accountant. A certified accountant is capable of offering a wide range of accounting services. However, not every CPA offers all of these services.
You can expand the scope of partnership as your business grows. Thus, it’s important to start an outsourcing partnership with a certified business accountant offering comprehensive services.
Industry Experience
A certified accountant having industry experience matching yours will be an added advantage. Every industry comes with unique challenges and opportunities. Hence, an experienced accountant with expertise in your industry would be able to offer tailor-made advice for your business.
For instance, if you are running a dental practice, a dental CPA would be in a position to understand your business needs. You’ll then be able to formulate an effective financial matching your business objectives.
Accessibility
Online collaboration tools have made it easier to communicate with outsourcing accounting partners. However, you should ask whether your CPA will be available for customized tasks or not. Also, confirm the available working hours that match your business hours.
A certified business accountant in your locality would be an added advantage.
IRS Representation
The IRS offers two types of audit representation rights to accountants. Limited representation rights for non-certified accountants and seasonal agents. Unlimited audit representation rights for qualified professionals such as certified accountants, attorneys, and enrolled agents.
When you outsource the accounting tasks, you feel the comfort of full representation rights. You may find an IRS audit mail for various reasons. Hence, working with a certified accountant would offer an added advantage here.
Business Consultation
The role of certified accountants has evolved and become challenging. One of these challenges is offering advisory and business consultation services. Certified accountants offer business consultation and advisory services through their experience and skill set.
Advisory services and business consultation are prime factors to consider when outsourcing the accounting function. For instance, a dental CPA would be in a position to offer advice on medical equipment leasing or buying considerations. Similarly, debt restructuring, cash flow management, tax advisory, payroll taxes, and transaction advisory are key services that you can obtain from a qualified CPA.
Tax Planning
Managing the tax liability is the ultimate goal for outsourcing the accounting function for many businesses. However, tax liability management starts with long-term tax planning. Consulting a professional can help you manage the tax liability in the long run.
Learn More
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