What are CPA firms Kissimmee and why use them? CPA or certified professional accountant firms help individuals and organizations to plan their investments, finances, mergers and acquisitions, taxes and other financial activities. Though, the basic purpose of CPA firms Kissimmee is helping an individual or a business to grow. Many people use the terms CPA and accountant interchangeably but the truth of the matter is that CPAs and accountants are two different people. While all CPAs are accountants, you cannot say the same in reverse.
CPA firms Kissimmee are considerably different from accounting firms. While even someone without a degree or certification can call themselves an accountant, a CPA has to earn the specified licensing, education and experience before calling him or herself a certified public accountant. Apart from acquiring the CPA education and getting the required experience, a certified public accountant candidate has to pass the CPA examination which is the same for all CPA candidates across the United States. The American Institute of CPAs (AICPA) is responsible for developing, invigilating and grading the exam. Though, providing CPA license is the responsibility of the state or local boards of accountancy.
You can present yourself as a certified public accountant only after you receive the CPA license. The certified public accountant is extremely tough and not many people pass it. In fact, in 2015, of all the people that undertook the CPA examination, only 40% managed to pass it. This clearly indicates the level of skill and expertise CPAs or people belonging to CPA firms Kissimmee have. Having performed an overview of CPAs, it is time for us to take a detailed look at the job description and specialization areas of CPAs or people belonging to CPA firms Kissimmee.
Understanding CPAs and their areas of specialization
The skills of CPA firms Kissimmee are employed by many multinational corporations, privately owned companies, and non-profit organizations. Using their expertise in investment management, risk assessment, tax planning and account analysis, CPAs help the aforementioned organizations to stay competitive and strong. The demand for CPA firms Kissimmee is growing each day due to today’s complex global business environment.
What are the things that CPAs? First of all, by appropriately filing required documents, assisting with tax preparation and maintaining accurate records, certified professional accountants help profit-seeking businesses, individuals, non-profit entities and government agencies to remain financially stable. Additionally, by providing investment advice, preparing and analyzing finances and planning tax strategies, CPAs add value to individuals and entities. Generally, CPAs work for either the ‘Big Four’ firms or the CPA firms Kissimmee. Whether they belong to the big four firms or CPA firms Kissimmee, certified public accountants have certain areas of specialization. Following are the five areas of specialization of CPAs.
Often, CPAs are referred to as auditors. A task regularly performed by certified professional accountants is internal auditing. While performing internal auditing, CPAs do multiple things including:
- Checking for fraud, mismanagement and waste
- Verifying the effectiveness and efficiency of a company’s internal control
- Verifying the accuracy of company’s financial data
In order to help them make viable business decisions, CPAs assist the management team of company in preparing financial documents. Other important management accounting tasks undertaken by certified professional accountants include preparation budgets and development of future strategies.
Forensic accounting is another task performed by CPA firms Kissimmee. CPAs who perform forensic accounting look for proof of tax evasion, money laundering, theft, and securities fraud.
A form of accounting not known to many but performed by certified professional accountants is environmental accounting. CPAs performing environmental accounting manage disputes, take care of compliance audits, and help companies or individuals to take green initiatives.
In order to ensure accuracy, security, and compliance with regulations, CPAs combine accounting with IT to test the relevant systems.
In order to help them avoid unnecessary costs, CPA firms Kissimmee develop effective tax strategies for individuals and companies. CPAs are always aware of the complex and changing tax laws and can get you prepared for any kind of taxation.
The aforementioned things are the five areas of specialization of CPAs. Now that we’ve discussed the specialization areas of CPAs, it’s time to discuss the things that set CPA firms Kissimmee apart from other accounting firms.
Things that set CPA firms Kissimmee apart from other accounting firms
Certified professional accountants have a better reputation amongst individuals, regulators, and businesses than other accountants. The simple reason for this is that CPAs have completed a globally accepted education and have years of experience in the field of accounting. Additionally, CPAs perform a wide variety of activities for individuals, governments, non-profit companies, small businesses, and big corporations. Some of the activities performed by certified professional accountants for the aforementioned organizations include preparation of tax, auditing and different types of accounting.
Though most accountants with a license can perform the aforementioned tasks, there are some things that can only be performed by CPA firms Kissimmee or a licensed CPA. Following are two things that only CPAs can perform:
- It is mandatory for each and every public company to file audited financial statements with the Securities and Exchange Commission. CPA firms Kissimmee or individual certified professional accountant are required by public companies to audit and file report with the SEC.
- Only CPAs are the accountants allowed to represent individuals or companies in front of the IRS.
Worked performed by the CPAs working for CPA firms Kissimmee
Generally, certified professional accountants at CPA firms Kissimmee work in one of three areas. Following are the three areas CPAs at CPA firms Kissimmee work in:
A number of things are part of the tax services. Some of the major tax services include helping individuals and companies to fulfill their tax obligations and lower their tax bill, preparing tax for the individuals or companies, and filing local, state, and federal tax returns on behalf of clients. Also, CPA firms Kissimmee can represent their clients if local and state tax authorities want to ask some questions or if the IRS wants to perform an audit.
Management services performed by CPAs at CPA firms Kissimmee include strategic and long-term planning for individuals and companies and providing assistance to these individuals and companies to allow them to better manage their day-to-day activities. Activities that are part of the aforementioned services include estate planning, insurance coordination, and risk management, preparation of financial statements, budgeting, investment guidance, financial planning, and cash management.
The third and final area that CPAs at CPA firms Kissimmee work in is audit services. In order to help decision makers, CPAs perform audit or assurance activities to improve the context or quality of financial and non-financial information. In order to ensure that economic and financial information is correct and fulfills the generally accepted accounting principles (GAAP) criteria, auditing is performed. The auditing performed by the CPAs involves appraisal of the economic and financial information.
Understanding the difference between tax preparers and CPAs
Tax preparers offer their services to the individuals and companies looking for help in tax matters. On the other hand, certified professional accountants or CPAs are well known for their expertise in taxation and are approached by the people looking for help in tax matters themselves. Though, before you choose one over the other, you must understand the difference between a tax preparer and a CPA.
The relation between CPAs and taxes
Considerable education and experience in accounting is what CPAs generally have. As previously mentioned, individuals needs to undertake a professional examination and get a CPA license before calling themselves certified professional accountants.
A certified professional accountant has a wide range of accounting and financial skills. Some of the skills possessed by a CPA include the ability to deal with various types of regulations including tax laws, an understanding of corporate governance structures, and the ability to prepare financial statements for individuals and businesses. Also, compared to a tax preparer, CPAs generally have a better understanding of tax issues and laws. Though, as CPAs deal with many more things other than taxes, they might not be able to truly commit themselves to tax preparation and filing. This is what gives tax preparers an advantage.
Understanding the role of tax preparers
Though they don’t have the same education as certified professional accountants, tax preparers are far more committed to solving tax issues for clients than CPAs but since tax preparers can vary in quality, it is important to consider the different categories of tax preparers. The Tax agents registered with the IRS can represent taxpayers in front of the Internal Revenue Service. To be eligible for registration, tax agents need to pass and IRS test and have experience as an IRS employee.
Other than registered agents, the IRS also recognized participants of the Annual Filing Season Program. Though these participants aren’t registered agents, accountants, or attorneys, they have completed the required education hours to work as a tax preparer during the year. The only type of tax preparers you need to be wary of are the ones without any special credentials. Although these preparers might be competent at what they do, they cannot be trusted as they do not have any proof of their competency or skills. If you do not treat such tax preparers with suspicion, you may end up working with a disreputable tax preparer. Ultimately, this will cause problems in the preparation and filing of taxes to the IRS. This is one of reason going with CPA firms Kissimmee for tax preparation is a safer bet.
Your needs and how comfortable you are with your taxes determines which one amongst a tax preparer and a certified professional accountant is right for you. If you’re looking to simply file taxes then a tax preparer might be sufficient for you but if your tax needs are complex then hiring the services of CPA firms Kissimmee may be necessary. Apart from choosing between a CPA and a tax preparer, you also need to pick one from a tax lawyer and a certified professional accountant. This is what we’re going to discuss next.
Tax lawyer or a CPA: who should you choose?
There are a number of options available to you if you’re looking to get help with your taxes. Facilitating people with all sorts of needs and budget is the purpose of making available a number of tax assistance options. Two popular tax assistance options are tax lawyers and certified public accountants. Many people want to know whether a tax lawyer or a CPA is better for them. Unfortunately, there is no straightforward answer to this. Considering what each of them offers is the only way to determine which one amongst a tax lawyer and a CPA is better for you. As we already discussed about CPA in detail, we’re not going to re-iterate what a CPA does. On the other hand, we do need to discuss who a tax lawyer is and what tasks he or she performs.
A person who has completed law school, passed the examination, and has tax-related experience is known as a tax lawyer. Legal education primarily focuses on disputes. This is what gives tax lawyers an advantage over certified professional accountants. Although both a tax lawyer and a CPA can represent you in front of the IRS, the former is more trained to deal with the tax authorities and any issues that may arise. CPAs can also help you to resolve tax issues but they aren’t as well versed on the tax laws as the tax lawyers. Another area where tax lawyers may have an advantage over CPAs is tax planning: they can advise you better on how to structure your assets and minimize your tax liability. Though, it’s better to go with a CPA if you’re looking to get help with bookkeeping and filing of taxes.
Another reason to choose CPAs over tax lawyers is cost. Compared to CPAs, tax lawyers are much more expensive to hire. There are some attorneys that charge as much as CPAs but the level of efficiency and effectiveness offered by them is questionable. You should consider working with an IRS registered tax agent if you have a limited budget and just need help in preparing your taxes. As previously mentioned, the registered agents have passed a comprehensive IRS exam and are well equipped to help you prepare your taxes. Just like tax lawyers and certified professional accountants, the registered agents are allowed to represent you in front of the IRS but unlike the other two, registered agents need to focus solely on preparation and filing of taxes.
Why hire CPA firms Kissimmee
You must hire CPA firms Kissimmee if you want to save yourself from having to go through lengthy tax forms and laws and are looking to avoid handling complex legal and financial issues. Since they know the ways of getting tax deductions, CPAs can save you money by lowering your tax bill. As CPAs have experience of tax filing, they can easily guide you out of trouble when issues arise in your filing of taxes. Since they eliminate the chances of error, CPAs prevent the need for re-filing. Though all of the aforementioned things are important, you must think about the long-term relationship when choosing a certified professional accountant. You should choose a CPA who can help meet all your needs and has a communication style you can work with. Also, the CPA should be knowledgeable enough to help you make key business and financial decisions.
CPA firms Kissimmee is a safe and viable way to file taxes with the IRS. There are a number of reasons to use CPAs to file taxes. First of all, both the state and the federal government certify CPAs. Additionally, the IRS frequently reviews the performance including the auditing and accounting abilities of CPAs. If a CPA isn’t performing up to the mark, the IRS bars them from handling or filing taxes.
It is mandatory for every person with a CPA license to present their clients with all the tax options they’ve got so hiring a CPA makes everything transparent and nothing is hidden from you.
Often, the IRS performs audits on companies and individuals. The most effective way for anyone to deal with back taxes and IRS audits is hire CPA firms Kissimmee. CPA firms Kissimmee can represent you in front of the IRS and can get you prepared for the audit whether the IRS is performing the audit at your home or in your office.
There are several reasons to hire CPA firms Kissimmee. Hire CPA firms Kissimmee if you’re looking to easily prepare and file taxes, deal with IRS audits and save money.
If you need more information about accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for almost 20 years. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting and tax professionals are NOT CPA’s. CPA services provided by third party provider.)