Handling finances is a task that leaves no room for error because, the smallest error can result in a stiff penalty, which is why it’s best to consult an expert for tasks that require the utmost accuracy. When it comes to sorting out balance sheets, preparing tax reports, and auditing practices, there’s only one professional that comes to mind, accountants.
Contrary to popular belief that there’s only one kind of accountant, there are different types of accountants, and what they do hinges on their specialization and role in the company. Each of these accountants play a role in the financial system, making it imperative for you, as a business owner, to learn which specialist to employ should the need arise.
While most accountants will know the fundamentals of their profession, each professional will be more adept in certain aspects of the trade. Keeping accurate records, analyzing transactions, and preparing reports are just some of the duties that each of these experts need to perform. But what makes them different from one another is the information they operate with.
We enumerate the various types of accountants you’ll encounter below:
CPAs are valued members of any business because of the technical expertise and guidance they give to their clients. Becoming a certified public accountant is no easy task, achieving this title will require individuals to complete a stringent set of state and federal requirements. In fact, for an accountant to file a report with the Securities and Exchange Commission (SEC), they’ll need to have this achievement.
The rigorous conditions needed for this qualification open new opportunities to its wielders, it also allows them to further specialize their craft. The letters ‘CPA’ can be found displayed beside the names of financial analysts, and even chief financial officers of large corporations.
In other countries, a Chartered Accountant (CA) is the equivalent of a CPA.
When it comes to managing risks, company investments, and budgets, management accountants are the professionals for the job. Management accountants help set the financial direction for the business through their analysis and forecasting expertise. The reports they create are then used by top management for strategic decisions.
Complying with the legalities of finance is a tricky business that requires the help of a specialized accountant. Companies employ auditors to ensure good business accounting practices and accurate financial documents.
There are two types of auditors that you’ll likely encounter during your business’s lifetime, both are enumerated below:
Hired by the company itself, internal auditors review internal processes, detect fraud, and optimize operations to meet objectives. These types of accountants scrutinize all financial documents to keep the organization ready for mandatory external audits.
Strict and impartial evaluations of financial documents are performed by external auditors to ensure legal compliance. The fair assessment of each organization will give stakeholders peace of mind regarding their investment’s direction.
Uncovering legal issues like embezzlement, money laundering, and fraud require the expertise of a forensic accountant. This type of accountant works closely with authorities to carefully assess the financial records of the company in question.
Forensic accountants carefully monitor the activities of a business or individual to make certain that the transactions are legitimate.
The funds of both the local and federal governments are closely regulated by its accountants. These professionals audit government offices and departments for fiscal efficiency and proper use of public funds.
Government accountants also advise government agencies on the proper management of assets and expenditures.
Hedge funds and brokerages employ investment accountants to manage investments and keep track of financial trends that can be detrimental to the firm. This professional also crunches numbers to guarantee that the company’s debts and risks are managed.
Tax accountants help individuals prepare their annual tax returns in an accurate way that maximizes their savings while avoiding fines. Aside from helping people with their tax documents, this type of accountant can also be employed by businesses handling payroll or accounting.
Whether you’re confused about how to maximize your money’s earning potential or how to successfully get out of debt, a financial advisor can guide you to the right path. A financial advisor will help you handle your money and keep you informed of the potential tax implications of the financial instruments you choose to avail of.
Balancing the books in time for tax season is hard enough as it is. The difficulty increases even further as your business grows, never mind the fact that you’ll also need to file for your personal taxes as well.
Asking for help by hiring an accountant that can take care of your business is nothing to be ashamed of because, it’s an indicator of your company’s growth. However, excellent accountants can be hard to come by especially if you don’t know where to find them. This is why having a repository of CPA email leads will be a beneficial practice for your company.
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