First things first, let’s state the premise:
What defines the accountability of an accountant?
- An accountant is accountable to the people who rely on his work.
- An accountant has the responsibility of the company’s management.
- An accountant has the responsibility of the investors.
- An accountant has responsibility of the creditors.
Therefore an accountant keeps himself updated about the outside regulatory bodies, and the integrity of the financial markets. If you’re still wondering, a CPA is deemed as a Certified Public Accountant!
Now that we’ve established the nitty-gritty, let us get down to the gist of the topic:
Some Noteworthy Tips for CPAs
TIP 1: Accountants must update themselves on all applicable principles, standards and laws of Certified Public Accountancy as they are responsible for preparing valid financial statements.
TIP 2: Accountants need to plan and execute and also overlook financial policies and procedures of the firms they work with as this would ensure they run proficiently and most important profitably.
TIP 3: Accountants need to be highly skilled and provide the best advice to the firm they work with. They need to keep track of the changing financial regulations and keep updating their knowledge on growing complexity of taxes and keep abreast with international controls and accounting information system.
TIP 4: CPAs need to perform a wide range of activities like accounting, auditing and tax activities this they need to analyze their company’s structure and activities and advise management on the tax ramifications which will help them ensure that their businesses and organizations remain within line of revenue and paying taxes along with public firms and government agencies.
TIP 5: Accountants need to advise firms in other areas such as compensation to employee benefits to data processing systems and asset protection.
TIP 6: CPAs need to involve themselves in strategic planning and budget development and at the same time be alert in order to prevent fraud during contract negotiation and solve disputes, and preparing tax details and filing.
TIP 7: CPAs need to prepare financial statements and reports, analyze ledgers, and oversee payable and receivable accounts, and forecast revenue and expenses.
TIP 8: CPAs need to create financial reports and budgeting models for their firms and provide solutions by applying accounting practices to financial issues and initiate maximum growth and profitability.
TIP 9: CPAs need to examine financial documents in order to eliminate fraud.
TIP 10: CPA can help set up a business plan by helping potential owner obtain the required finance and at the same time advice on how viable the business would be.
TIP 11: CPAs can provide a broad range of financial services to small businesses such as preparing financial statements and statement of tax returns and providing advice on variety of aspects of business like operations and management, finance and at the same time assist in developing and installation of effective accounting systems.
TIP 12: In business regimes, CPAs can assist with business tactics, give recommendations and help businesses to reduce costs, improve their top line and minimize risks. Professional accountants in business represent the interest of the owners of the company (i.e., shareholders in a public company) and their role include creating strategies for the company and executing these strategies along with analyzing and creating financial information.
CPAs work directly for businesses carrying out internal financially-related duties and they usually perform management duties, prepare internal financial statements along with actively contributing to their employer’s operational, financial and strategic plans.
A competent CPA in any business organization is an invaluable asset to the company. There are no two ways about it!