Many times the question arises Do I need a accountant?. If so, do I need a chartered accountant, a public accountant or a certified public accountant? This site will give you answers to those questions by giving you information about accounting, accountants and accounting services, click here.
Your personal accounting problems normally would not require an accountant unless you were heavily involved in stocks and bonds or multiple properties or at a loss when computing your taxes at the end of the year. There are computer programs to handle budgeting, bookkeeping and even taxes. However, if you own a business, you should seriously consider seeking the services of an accountant for two reasons:
1. Business owners are usually too busy with the task of running their core business rather than getting bogged down with the credits and debits of the accounting side.
2. An accountant can bring in a whole range of business financial experience that will help the owner make the right financial decisions and insure the success of his or her business.
Types of Accountants you may know:
1. Bookkeeper Theoretically, bookkeepers are an entry-level position in accounting. However, good bookkeepers are a valuable asset to any accounting team, as the basis of all financial reporting systems rests upon their data contribution. Bookkeepers record transactions from main sources such as invoices and checks.
2. Accountant (general) General accountants make accruals and adjustments. Full Charge bookkeepers, however, can do the whole accounting process, through final financial statements. Accountants can take the basic information, add all of the numerical information and formulas and adjust it to final status. In large companies, accountants may specialize in one area, such as payroll or accounts payable.
3. Enrolled agent (EA) Enrolled agents are usually accountants, but not necessarily. They typically represent taxpayers before the IRS. To become an enrolled agent, one must pass an exam administered by the IRS. Accountants who offer their services to the public usually pursue the EA status.
4. Forensic Accountant , an accountant that investigate white-collar crimes where fraud, embezzlement are included and so with the disputes of contracts and laundering money. These accountants combine accounting expertise with knowledge of law, and may work with law enforcement or appear as expert witnesses at trial.
5. CPAs or Certified Public Accountants that can attest to the validity of financial information. This means that they can audit financial statements and report on whether they are accurate or not. Certified Public Accountants (CPAs) are licensed by law.
Generally, a CPA is the best bet for the business owner. They bring a wide range of education and experience: Some of the information this experience brings will be:
1. Determining the type of business structure that best suits the owner and the business.
2. Guidance in setting up accounting sytems for quarterly and year end reports as well as software programs to assist in making these reports.
3. Assistance in payroll and resulting taxes.
4. Determining buy or lease options.
5. A better understanding of financial statements.
6. Health benefits and Retirement plans for you and your employees.
7. Determining the taxes related to your type of business.
8. Understanding the tax laws.
This is just a small list of the benefits a CPA can bring to a business. The CPA will become an integral part of your business. He will help you make decisions, advise you in financial decisions and keep you away from tax problems.
Watch the following video to learn why Top Button Fashion Media hired a CPA.
When to Hire a CPA
Because of the intimacy the accountant must have with your business, it is important that you find one that you are comfortable with and who shows that he or she is interested in your success as well as the success of your business. The business experience he or she has, as related to your business, is also important. This means less bumps down the road. So pick your accountant carefully and expect your relationship to be a long and prosperous one.