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CPAs provide services directly to the public, as well as
corporations or non-profits. They can work in virtually any
area of finance.
Note: Some CPAs are generalists and offer a range of services
(especially those in small practices). However, many CPAs specialize in
just one area and do not provide all the services listed below.
Tax services
CPAs prepare tax returns. But did you know they also
help individuals and business plan short and long-term goals to
lower their tax liabilities? CPAs stay up-to-date on tax law
changes and other tax issues that can save their clients money.
They can also assist with tax problems. Some CPAs represent
clients before government agencies like the IRS.
Financial planning and services
A CPA can help you maximize your income and plan for a secure
future. CPAs can do everything from helping you make wiser
spending decisions to saving for your child's college education to helping
you plan for retirement.
Here are just some of the ways a CPA can help you:
- develop a personal budget
- offer recommendations on ways to save for college
- plan for retirement
- choose investment opportunities
- assist with estate planning
- create a succession plan for your business
Financial statement reporting
Virtually all entities -- whether they are privately held,
publicly owned, governmental or not-for-profit -- must prepare
reports. These reports, called financial statements, depict
the entities' financial performance and position. Financial statements help
owners and management make operating decisions, creditors
evaluate loan applications, and investors make
investment decisions.
CPAs perform a valuable service by acting
as an independent third party in the financial reporting
process. To meet each organization’s specific need, a CPA offers
three distinct services: an audit, review and compilation.
Audit
An audit provides the highest level of
assurance that an entity’s financial statements are presented
fairly in accordance with established standards. CPAs must plan and
perform their audits to obtain reasonable assurance that the
statements are free of material misstatement. To do
this, they must consider:
- Consider the entity’s internal controls
- Examine, on a test basis, evidence supporting the
amounts and disclosures in the financial statements
- Assess the accounting principles used and significant
estimates made by management
Audits are required for all publicly-held companies and all
organizations receiving government funding in excess of certain
thresholds. Many other organizations have an audit at the
mandate of an outside third party, such as a creditor or state
agency, or at the request of internal management or an oversight
board.
Review
In a review engagement, a CPA provides
limited assurance that they are not aware of any material
modifications that would be necessary in order for financial
statements to be in conformity with established standards. The
procedures performed by the CPA are much less extensive than in
an audit, and consist primarily of analytical procedures and
inquiries.
Compilation
In a compilation engagement, a CPA
assembles financial statements from information provided by
management, but provides no assurance on them. Compilations are
most often performed for small, non-public companies with
limited in-house accounting capabilities.
Other assurance services
Public trust in the integrity and objectivity auditors bring
to client engagements has led to the development of new services. These newer, value-added
assurance services are aimed at improving the quality of
information, or its context, for decision-makers. In providing
these and other assurance services, CPAs apply their independent
professional judgment to meet specific customer needs.
Business valuation, forensic and litigation services
CPAs are considered the foremost authorities on financial and
economic issues. CPAs act as expert witnesses and
consultants, presenting private advice to attorneys. CPAs also
assist clients in business acquisitions, fraud investigations,
bankruptcies, alternative dispute
resolutions and other legal matters.
Here are some examples:
- Estimate the selling price of a
business
- Resolve disputes related to estate and gift taxation
- Divorce litigation
- Allocate business purchase price among the
business assets
- Establish a formula for estimating the value of
partners' ownership interest for buy-sell agreements
- Settle many
other business and legal disputes.
Information technology
Many CPAs work with clients to harness the power of
technology. CPAs:
- Provide IT planning and assessments
- Design information systems
- Select and implement software solutions
- Advise on the use of electronic commerce
- Develop information security policies
Find a CPA for your needs
This MNCPA's
CPA referral service is a convenient, confidential and
proven way to find the accounting professional for you, your
business or customers.
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