All CPAs are accountants but not all accountants are CPAs. A CPA is different from an accountant. Certified public accountants are lawfully and ethically responsible to be honest and trustworthy, and to avoid carelessness in their duties. CPAs have real influence over their clients, which means their assessment and work can influence not just an individual but an entire organization- including its workers, its board, and its investors.
CPA in Christiansburg, VA aids businesses and nonprofit organizations as they have comprehensive training in tax law, auditing systems, management procedures, and other crucial elements of business economic operations.
Who is a CPA?
A CPA is a financial specialist licensed by a state board to provide accounting services to the public. A CPA performs accounting responsibilities such as tax preparation, auditing, and consulting.
Not all accountants are CPAs. CPAs are tasked with accounting tasks such as creating reports that accurately contemplate the business dealings of the companies and individuals for which they work. They are also concerned with tax reporting and filing for both individuals and businesses. A CPA advises people and companies to have a preference for the best course of action in terms of minimizing taxes and maximizing profitability.
Skills required to be a CPA
There are no set skills that all CPAs possess. However, certain skills are common among successful CPAs.
Technical skills: CPAs need comprehensive technical knowledge to perform the job duties effectively. A CPA should be tech-savvy and upgrade himself with the latest software to perform his accounting functions.
- Organizational skills: CPAs need good organizational skills to prepare factual reports, organize documents, and keep track of deadlines significant for tax returns, audits, and other duties. They simultaneously work for several clients, so having a system is crucial.
- Critical thinking: As a CPA, one has to be able to foresee the big portrait and think critically. They must analyze data, evaluate it, and then draw meaningful conclusions to give reliable advice.
- Problem-solving: CPAs are responsible for discovering solutions to complex crises and formulating procedures that address issues faced by clients with their taxes and business practices.
- Communication: As a CPA, you must be able to clearly and effectively correspond with others, both in writing and verbally. This skill is necessary for any CPA working with colleagues, managing employees, or directly with clients.
- Analytical thinking: CPAs should think analytically while analyzing data and finding patterns. This skill aids their accounting career and enables them to spot problems with financial records or processes resulting in time-saving.
Thus, a CPA is a credential earned by accountants. CPAs, however, are granted certain roles that only they can perform including audits of public companies and preparing audited financial statements for a company, such as a balance sheet or an income statement.
