In order to define the term "Certified Public Accountant (CPA), it is first necessary to define the terms "accountant" and "accounting."
An accountant is someone who does accounting. Accounting is a process of recording financial transactions of a business, and then compiling those transactions into reports called financial statements, and providing an analysis of these financial statements. Accountants must follow specific rules and regulations, including Generally Accepted Accounting Principles (GAAP), which are rules and standards set forth by the Financial Accounting Standards Board (FASB).
A Certified Public Accountant is an accountant who has passed a uniform CPA examination and is licensed in one or more states. CPA's may be internal, serving as employees of a company. They may also be external, coming to a company to perform an audit (analysis and review) of the company's financial statements) and offering an opinion on the adherence of those financial statements to GAAP.
CPA Assistance for Small Businesses
A CPA can:
- Help with monthly bookkeeping and accounting tasks
- Prepare payroll and take care of payroll taxes
- Run financial reports on a regular basis
- Provide assistance in tax planning
- Prepare business tax returns
- Represent your business at a tax audit.
