What Is a CPA?
Quick Answer
A CPA, or Certified Public Accountant, is an accounting professional who has met specific education, testing, and licensing requirements. CPAs can help individuals and businesses understand their finances and provide different accounting services depending on their area of work.
For small business owners, a CPA can be someone you turn to when you have questions about your numbers or need professional accounting help. AZ Easy CPA provides CPA and bookkeeping services in Chandler, Arizona and beyond.
What Does CPA Stand For?
CPA stands for Certified Public Accountant. While people often use the words accountant and CPA to mean the same thing, they aren’t exactly the same.
An accountant is someone who works with financial information. A CPA is an accountant who has gone through additional education and testing and has met the licensing requirements to become a Certified Public Accountant.
In simple terms, every CPA is an accountant, but not every accountant is a CPA.
What Can a CPA Help a Small Business With?
The services offered by CPAs can vary. Some focus heavily on taxes, while others may work with businesses on bookkeeping, accounting, financial questions, or other areas.
Depending on the CPA and the services they provide, a small business may get help with:
- Bookkeeping
- Reviewing financial records
- Understanding financial reports
- Setting up or reviewing QuickBooks
- Cleaning up bookkeeping problems
- Answering accounting questions
- Helping business owners better understand their numbers
- Providing additional accounting services
It is always important to ask a CPA firm exactly what services they provide rather than assuming every CPA offers the same things.
Is a CPA the Same as a Bookkeeper?
No. A CPA and a bookkeeper can both work with your business finances, but they usually have different roles.
A bookkeeper typically handles the regular work of keeping your financial records organized. That may include recording income and expenses, organizing transactions, checking bank and credit card accounts, and maintaining QuickBooks.
A CPA has additional education, testing, and licensing. Depending on the services they offer, a CPA may help with accounting questions and other financial matters beyond everyday bookkeeping.
Some businesses use a separate bookkeeper and CPA. Others work with a CPA firm that also provides bookkeeping so they can get both types of support in one place.
Does My Small Business Need a CPA?
Not every small business needs the same amount of help from a CPA. A very simple business may only need occasional professional guidance, while a growing or more complicated business may have questions more often.
You may want to talk with a CPA if you’re unsure whether your financial records are correct, don’t understand your financial reports, have questions about the accounting side of your business, or simply want a professional to review what you’re doing.
Having someone available who understands accounting can be especially helpful when your business starts getting more complicated.
Why Is Good Bookkeeping Important When Working With a CPA?
A CPA can provide better help when the financial information they’re reviewing is accurate and organized. That’s where bookkeeping comes in.
Bookkeeping keeps track of the everyday money activity in your business. If months of transactions are missing, expenses are recorded incorrectly, or your bank accounts don’t match QuickBooks, your CPA may first need to figure out what happened before the financial information can be useful.
Keeping your bookkeeping current gives your CPA cleaner information to work with and gives you a better picture of your business throughout the year.
Frequently Asked Questions
What is the difference between a CPA and an accountant?
An accountant works with financial information, while a CPA has completed specific education, testing, and licensing requirements. Not every accountant is a CPA.
Does a CPA do bookkeeping?
Some do. Many CPA firms offer bookkeeping services, while others focus on different areas of accounting. It depends on the firm and the services they provide.
Do I need both a bookkeeper and a CPA?
It depends on your business. Some businesses have separate professionals for bookkeeping and CPA services, while others use a CPA firm that provides both.
Can a CPA help with QuickBooks?
Many CPAs and CPA firms work with QuickBooks, although the services offered vary. They may help with bookkeeping, QuickBooks questions, clean-up work, or reviewing financial information.
When should I talk to a CPA?
You may want to talk with a CPA when you have accounting questions, don’t understand your financial information, need help with your bookkeeping, or want professional guidance about the financial side of your business.
Looking for a CPA or Bookkeeping in Chandler, Arizona?
AZ Easy CPA provides CPA and bookkeeping services in Chandler, Arizona and beyond. Whether you have questions about your books, need help with QuickBooks, have fallen behind on bookkeeping, or simply want to better understand your business finances, reach out to Chris at AZ Easy CPA.
Chris can answer your questions in plain English, take a look at where things stand, and help you figure out what kind of accounting or bookkeeping support makes sense for your business.
