What Is a CPA Firm

Sometimes the terms "CPA" and "accounting" are used interchangeably. However, this is frequently an unintentional misrepresentation. Although all CPAs are accountants, not all accountants are CPAs.

So, what exactly is a CPA? CPA is an abbreviation for Certified Public Accountant. Not only is there a minimum academic requirement to become a CPA, but there is also a code of ethics and a highly regarded four-part examination.

In this regard, there is no greater or more versatile credential in the accounting world than the CPA. As you might expect, those who achieve this pinnacle are held in much higher regard in the professional world.

What Services Do CPA Firms Provide?

Now that you know what a CPA is, what exactly is a CPA firm? In terms of ownership, most states require at least a 51:49 ownership percentage of CPAs to non-CPAs. There are, however, a few that require 100 per cent CPA ownership.

In terms of staffing, there must be at least one CPA, with other employees serving as junior accountants and filling other roles as needed.

When you hire a CPA firm, you will be able to receive a variety of consulting and financial services. It's unlikely that you'll need the entire suite, as clients frequently indicate the needs that are important to their businesses.

Auditing is one of the most popular services offered by a CPA firm. Other services that a company may be interested in include forensic and environmental accounting, business and management consulting, financial planning, and so on.

To handle specified requirements, a CPA firm may use either on-site or off-site accountants, depending on the designated workflow. These could be daily requirements, monthly report reviews, or even quarterly, semiannual, or annual tax form preparation.

The Difference Between CPA and Accounting Firms

The first significant distinction between a CPA and an accounting firm is in the ownership and staffing structure. While the requirements outlined above apply to a CPA firm, they do not apply to an accounting firm.

This is due to the fact that public accounting does not necessitate CPA certification. A CPA firm can technically do anything that an accounting firm can do in terms of services. The most noticeable difference, however, is that only a CPA license allows for two major things.

To begin, only a licensed CPA can review or audit the audited financial statements that public companies are required to file with the SEC. Second, only a CPA is authorized to represent clients before the Internal Revenue Service (IRS).

It should be noted, however, that a public accountant who is also an enrolled actuary, enrolled retirement plan agent, enrolled agent, or attorney can serve as the IRS's client representative.

What Does a CPA Do When Working for an Accounting Firm?

CPAs in an accounting firm typically work in one of three designated areas.

The first is management services. The goal here is to oversee and manage individual or organizational activities on a daily and long-term strategic level. Financial planning, statement preparation, insurance coordination, risk management, and estate planning may all be required.

Tax services are also frequently provided, with CPAs preparing local, state, and federal tax returns. They also work with clients throughout the year to help minimize tax obligations, and they provide representation if there is a need to address IRS concerns.

Finally, auditing and assurance services are available. Auditing examines economic and financial data to ensure its accuracy and compliance. Assurance seeks to improve the context and quality of non-financial and financial information so that it is more easily understood by key decision-makers.

How to Find a CPA Firm

Finding a CPA firm in El Paso is the least of your worries, even considering the extent of the certification requirements. Look no further than Marcus, Fairall, Bristol + Co., PLLC for all your CPA needs. It is a full suite CPA firm found in El Paso, Texas.

All of the aforementioned services are provided by a team with impressive credentials. The managing partner has received CFF certification from the AICPA (American Institute of Certified Public Accountants).

For reference, this is only given to people who have not only become CPAs but have also used their knowledge, skills, and experience to amass vast expertise in forensic accounting.

If you have any questions about taxation, forensic accounting, or anything else related to small businesses, please contact us at (915) 775-1040. We provide our clients with a wide range of accounting services, including the following:

Marcus, Fairall, Bristol + Co., PLLC
Full-Service CPA Firm
230 Thunderbird Dr. Ste G
Phone: (915) 775-1040
Location: El Paso, TX, USA

Comments

Post a Comment

Popular posts from this blog

Documentation in Accounting

Image
At  Marcus, Fairall, Bristol  the sensitivity of financial data is a top consideration. We have put in place multi-factor measures to ensure the privacy of all of our client files. Safeguarding the privacy of client information is a top priority and these record-handling procedures determine the manner in which we handle, save, and use documentation. Related Articles What Does an Accountant Do? When to Hire a Forensic Accountant How Accounting and Accountants Help Small Businesses What Questions Should I Ask a Business Accountant? Create Standard Operating Procedures A professional company must have a clear procedural system for handling day-to-day tasks. Professionalism necessitates clear data documentation and security procedures. We will create documentation solutions that will allow you to move forwards more efficiently. Your client, employee, patient, and other records are protected, and procedures are streamlined when you use standard operating procedures for record-keeping. Prop
Read more

What is the Difference Between an Accountant and Financial Planner

Image
Accountants would be defined as follows: An accountant is a professional who performs accounting functions such as  audits or financial statement analysis  as well as prepares tax returns and helps those that need tax problems resolved.  As a fairly new specialty, Forensic accountants work with historical records to find answers to questions specified in the project's scope of work.  Typically, these engagements are legal in nature and often Forensic accountants are hired by attorneys. Accountants must  abide by the ethical standards  and guiding principles of the region where they practice, such as the International Financial Reporting Standards (IFRS) or  Generally Accepted Accounting Principles  (GAAP). The most common accounting designations are the  Certified Internal Auditor  (CIA),  Certified Management Accountant  (CMA),  Certified Public Accountant  (CPA), and  Certified in Financial Forensics  (CFF). A Certified Internal Auditor doesn’t need to receive any license in orde
Read more

The Difference between Tax Return and Tax Refund

Image
  What Is a Tax Return? A tax return is a document that you fill out that reports your income, expenses, and tax bill. The document has been submitted to the Internal Revenue Service (IRS). In general, the document will outline how much income you receive, where it comes from, and how much money the IRS withheld for taxes in the previous year. The information is obtained from the W-2 form. Furthermore, the returns include deductions and credits, which usually lower your tax bill. Its complexity is determined by your domestic and financial circumstances. If you have different types of income or life events, you'll need to fill out additional tax forms. Keep in mind that you must file your tax return by a certain deadline; in 2021, that deadline is April 18th. What Is a Tax Refund? A tax refund, on the other hand, is the amount of money that the IRS sends back to you after assessing and revising your tax return. It's more like reimbursing an overpayment you made while filing your
Read more