What is a CPA?
A Certified Public Accountant (CPA) has a lot of different roles when it comes to their job description. Most people think that CPA’s only do taxes but that isn’t always the case. While tax preparation and planning are common areas of expertise for CPA’s, they possess a wide range of skills and knowledge in accounting and finance. This allows them to wear multiple different hats and support businesses in more ways than just taxes.
A simple way to describe what they do is that they make data understandable. A CPA provides a way to understand accounting data. They let the numbers tell the story. Aside from taxes, a CPA provides a way to understand the accounting data. To understand how to run your business you must understand the financial data. This includes things like the balance sheet and the statement of profits and losses. When you really investigate the numbers, you can understand what aspect of your business is affecting what part of your financial data. Our CPAs at Whittaker like to go further. When we incorporate operational data, statement of cash flows, and many other metrics we can dive deeper into a business. When we use the accounting data, we can help you make better decisions in many different stages of your business.
What do they do outside of taxes?
We like to be an advocate for the family business. Some of these roles in the family business include being a teacher, a counselor, or even a coach. These can all range on the situation that the business or owners are facing. We are always hunting for the right data and how to implement it in your business. Sometimes business leaders just need an outside perspective from someone who knows the numbers better than they do. This is one of the biggest strengths a CPA has outside of taxes.
When you truly understand the numbers, you can implement the right procedures. Sometimes having someone in your corner is just what you need to find success. This can look different for every client. An example of this can be thinking and interpreting scaling opportunities, like new initiatives. Since CPA’s have such a good understanding of numbers, we can help decipher them and measure progress. Often times a business may find itself growing very quickly but the data system can’t capture the scale. We help coach our clients through processes like this so they can have as much success as possible.
Another common place a CPA can help is when there is a transition in a business. Maybe you are selling or just passing It down to the next generation. In situations like this there is a lot up in the air and many people are involved. Having a CPA in your corner to help guide you and make the best decision for you and your family can make a huge difference. We are knowledgeable in all things business, and we often meet with clients to talk about things that might not pertain to taxes alone.
Overall, a CPA is always trying to make the numbers make sense. This can come in the form of taxes or accounting. Most people don’t realize but, this allows them to be helpful to a business and a business owner in plenty of ways. If you are facing a transition in your business or want someone in your corner during tax time. Then reach out to us today through the link below.