Does a Small Business Need to Use a CPA?

Every business, regardless of its size needs an accountant, but not just any accountant, a business needs the services of a CPA in Utah.

There is often a misunderstanding of the terms “accountant” and “certified public accountant.” An accountant does accounting, he or she records the various financial transactions that the business conducts, the accountant then compiles the various transactions into one or more reports and provides an a analysis of these reports. All accountants are obliged to follow specific rules and regulations.

A CPA in Utah on the other hand is an accountant, the difference is; a CPA has passed a uniform examination and is licensed by the state. Depending on the size of the company, a CPA may be an employee or, as is true with most small and medium size businesses, the CPA comes from an accounting firm to perform an audit of the financial affairs of the client and offers an opinion on the adherence of the company’s financial statements to generally accepted accounting principles.

A CPA in Utah can be engaged to perform a number of advisory roles for a client, some of these roles are:

  • Consulting: In many cases a client will engage the services of a CPA to offer advice on certain activities being carried out in the company. The CPA can be asked to review and advise on the adequacy of internal controls, help in defining various strategic options or helping with the implementation of information technology and IT systems.
  • Tax services: Many CPA’s are called upon to offer clients strategic advice on their taxes as well as preparing the various tax returns.
  • Financial planning: A CPA in Utah will often be tasked with providing a client financial planning. This can embrace the transfer of a business for example; the CPA can advise the seller client on the best way to structure the transfer with the minimum amount of impact. A CPA can also work with a small business owner to develop an estate plan that will allow asset distribution with minimum tax implications.

Other than for audits, other accountants that are not CPAs can provide the services; however having the designation of CPA in Utah implies a higher level of expertise which is attractive to many clients who want the best financial advice and services available.

  • Audits: One of the most common demands placed on a CPA is to audit the books of a client. If the financial statements prepared by the client meet the evaluation criteria that is followed by the CPA then an audit opinion is issued. The opinion is shared with third parties who have reason to see the company’s financial affairs; these parties include shareholders and top management.

A CPA in Utah can handle a wide range of extremely important financial functions on behalf of a client. If you are looking for a firm of trusted financial advisers you are invited to contact Cook Martin Poulson, P.C. Certified Public Accountants.

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