Ever wonder exactly what a CPA does for businesses? Since there are different types of accountants with varying specialties, it’s important to know the differences and what to expect if you need to hire someone or are just curious. If you’re wondering if they can help your business, we have the answers here.

What Exactly Is a CPA?

A CPA is an accountant, who provides the financial services to support a healthy, sustainable business with the experience and accreditation that the state requires. They are a professional, who can advise the owner or GM when it comes to financial decisions. However, the sole responsibility of the business is on you, not your CPA.

What Do They Do For You?

They can prepare and file your business tax returns along with these basic CPA services.

1. Tax Advice and Planning

They can advise you on business tax questions or represent you with the IRS if you have any audit issues. They should also be proactive with the financials when it comes to taxes throughout the year.

2. Audit and Assurance Services

A CPA audit is a crucial part of preventing the possibility of an IRS audit. Everything will be clear and impartial in the report regarding economic and financial data of the business.

3. Management and Consulting

Basically, it’s business financial management, in the day to day and long-term plans. This includes things like -budgeting -cash management -financial planning -preparing financial statements -risk management and insurance -investment adviser -estate planning. These are all part of business financial management for day-to-day and long-term plans.

4. Forensic Accounting

Fraud auditing is necessary if you experience money disappearing from the business, embezzlement, or if you think a business partner might be stealing your share.

5. Basic Accounting Services

This includes services many people think of when they hear the term ‘accountant’. It includes bookkeeping and payroll services, as well as preparation and filings such as sales tax returns, among others. Your CPA will make sure that everyone is paid on time, that tax withholdings, insurance, and retirement are all deducted appropriately and forms are all completed accurately and on time.

6. CFO Services

Can’t afford a full-time CFO? Some CPAs can act as your company CFO on a part-time, as needed basis. This can include budgeting, budget-to-actual reporting, cash-flow analysis, break-even analysis and more.

Keep in mind that not all CPAs offer all these services.