What is a CPA?

A Certified Public Accountant, or CPA, is a licensed accountant who must obtain a certain level of education and training in order to earn state certification. CPAs are trained to understand and manage a host of complex financial issues, from filing taxes to internal auditing.

Related:5 CPA Certified Public Accountant Interview Questions and Answers

What are a CPA’s main roles, responsibilities and duties?

CPAs can work in a variety of settings and perform numerous job duties. The specifics of their job responsibilities change depending on the company they work for and their company’s goals and objectives. Common job duties for CPAs, regardless of the specifics of their position, include:

• Tax oversight:Many CPAs prepare and file a company’s taxes. They may also represent the company in interactions with the IRS if needed.
• Record keeping:CPAs manage financial record keeping independently or on a team of other financial professionals.
• Reports:Most CPAs serve as both a financial expert and a liaison to the company’s upper management team. CPAs often create financial reports and present them to company leaders.
• Audits:CPAs also perform internal audits of the company’s finances to ensure all the record keeping is accurate and hat they account for all the money that comes into the business and leaves the business.
• Forecasts:Some CPAs also assist their company’s leadership with financial forecasting. They may provide potential quarterly or annual profit projections or help with investing capital.
• Compliance:CPAs help businesses ensure regulatory compliance. They also update any processes and procedures in the accounting department to reflect regulatory changes.

Related:How to Write a CPA (Certified Public Accountant) Job Description

Benefits of hiring a CPA

Hiring a CPA rather than a traditional accountant or bookkeeper provides your company with a number of advantages. Consider the top benefits of hiring a CPA:

Tax understanding

In order to pass their certification exams, CPAs must have a thorough and deep understanding of tax law. CPAs are perfectly positioned to not only prepare and file your business’s taxes but also stay aware of any changes in tax law and filing regulations, keeping your company in compliance.

Debt reduction

CPAs can help your company reduce debt by creating effective budgets and managing financial oversight. Since CPAs are financial experts, they can help you make a budget that maintains your business’s efficacy but also pays down any outstanding debts to help your organization make a profit.

Investment advising

CPAs are also capable of managing capital investments to increase your business’s financial stability. They can determine how much money your company can realistically spend on investing and manage those investments as needed.

Decision making

Many CPAs create financial reports designed to help you and your leadership team make complex business decisions. Your CPA can create potential profit forecasts based on a number of financial scenarios to help you make informed choices regarding company growth or direction.

Cost reduction

A CPA can also help you reduce unnecessary costs in your organization. When reviewing your organization’s budget, your CPA can identify areas where you can reduce waste and where you could increase spending to improve production numbers and, eventually, profits.

General financial oversight

Overall, a CPA can help you understand all aspects of your company’s financial health, from taxes to forecasting. Having a dedicated financial professional on staff ensuring you’re working towards your financial goals while still maintaining regulatory compliance and paying off any debts can positively benefit your bottom line.

Related:How to Hire a CPA (Certified Public Accountant)

How to hire a CPA

If you’d like to hire a CPA for your company, follow these steps to find the ideal candidate to meet your needs:

1. Create a job description

Begin by creating a job description. Provide substantial details about the position and your company for potential candidates. Include:

• Job title
• Key job responsibilities
• Necessary education
• Necessary experience
• Required licenses or certifications
• Company description
• How to apply to the position

Consider including a salary range and description of benefits in the job description. Some companies choose to present this information later during job interviews, but others like potential candidates to have an idea of the salary expectations before applying.

2. Post the job

Once you’ve completed your job description, post it on your company’s website and on job posting sites like Indeed. You can also share your job description with any professional industry organization of which you’re a member to see if any of your peers have leads on prospective CPAs.

3. Perform job interviews

After reviewing the applications, select the best qualified candidates for an interview. Use the job interview as a time to gauge the candidate’s suitability for the position, and their potential fit with the company. Consider asking questions like these:

• “Do you have experience developing business metrics?”
• “What skills do you think are most important for a CPA to have?”
• “What accounting software do you have experience using?”

4. Check references

CPAs often have tremendous responsibility and financial oversight. It’s prudent to check their references and ensure they have proven skills and abilities before making a hiring decision. Ask previous employers, or if the candidate is a recent graduate, professors, about the candidate’s past work performance.

5. Make an offer

Make a salary and benefits offer to your top candidate choice. Assume the candidate will return with a counteroffer, so prepare to negotiate and potentially make a second offer.

CPAs can add tremendous value to your organization. Understanding what they can do to help your company thrive will ensure you hire the best possible candidate for your business.