You may have often come across the term Certified public accountant in your life. Though most people may be aware of want an accountant means, only a few are aware of the full significance of the term Certified public accountant.
Well, in simple words, what may be said is that a certified public accountant is a designation that is awarded to the people who have acquired a high professional standard in the industry of Accountancy. In America, the Certified Public accountant or the CPA designation is given out by the American Institute of Certified Public Accountants. The institute gives out this designation to the certified professional accountants only after they have ensured that the individual has the required education along with the experience that can meet the high standards of the requirement that has been set by them.
Certified Professional Accountants in Other Nations
Even in the other nations across the world, you will find that such certifications that are equivalent to the CPA certification are handed out to such qualified individuals, and the most common designation that is known for its worldwide popularity is that of Chartered Accountant or CA.
Qualifications of a CPA
Before you go on to understand how having the service of a Certified public accountant can make your life much more comfortable, it may be worthy of spending some time on understanding the qualifications one has to have to become a Certified public accountant.
As mentioned earlier, the American Institute of Certified Public Accountant has set a very high standard of the requirement for such professionals. As such, the qualifications that they need to have include:
A bachelor’s degree in any of the one subjects- business administration, accounting, or finance.
At least 150 hours of education, along with a minimum of 2 years of professional experience as a public accountant.
They must also clear the certification test organized by the institute. However, the requirements of this examination may vary according to the state of residence and practice of the candidate.
However, that is not all. Even after you have earned the designation, it may be taken away from you unless you are up to date with some specific hours of carrying out continuing education each year.
CPAs as Professionals
Accounting is not just important for businesses but individuals and the authorities as well. Thus it becomes clear that the CPAs have a very vast spectrum of choice when it comes to pursuing their career. They may choose to work with corporate or private companies, or they may set up their accounting farms as well and help their prospective clients in finance in a variety of ways.
CPAs in your life
From the above inferences, it becomes clear that a Certified Public Accountant is very different from an ordinary accountant. Well if you are still confused about how the certified public accountants can play their role in making your life simpler, here is a complete list for you:
- Calculating taxes: Every tax season, you may have to spend several sleepless nights in calculating the exact amount of tax that you have to pay. However, when you have a certified public accountant by your side, you have little to worry about. Be it an individual’s tax or that of a big business establishment, the CPAs can calculate the exact amount of tax for you. The CPAs will also ensure that the interests from short term debts are well taken care of so that you have no problem in securing a loan in the future.
- Establishing your business: A certified public accountant is the best person that you can go to for advice before you set up your business venture. They help you in selecting the right legal structure along with the other details, such as whether you would like to go for proprietorship, partnership, or any different structure. Remember that once you have set up the whole legal structure, it may be difficult to change it later, so it is better to have the advice of a professional from the very beginning.
- Can help you in selecting the right policy: Be it your health insurance or property insurance, there are so many different policies available out there that it becomes difficult for one to make the right choice. However, a CPA can make the entire task easier for you. They understand your budget, along with your ambitions and liabilities. Quite naturally, they can suggest the best policy out there for you.
While these are just some of the ways, there are several other financial areas as well, where a Certified Public Accountant can be of great help to you. You should get a crystal clear idea of their work and responsibilities and opt for their services. So do not hesitate and reach out to the best Certified Public Accountant today!