The Truth About How to Choose the Ideal Business Accountant with Maxine Stern

CPA

Automatic TRANSCRIPT

Startups and small businesses don't have much experience with professionals in the counting field. And that's why. I think it's important for them to understand what a certified public accountant is. What is well. I let me just back up and tell you what a person has to do to become a cpa as you know. There are many people in your community who work on taxes when we think of as the first thing we think of is someone who can prepare our taxes. But i hope. I'll lay out for you so many other ways that a cpa can help your business. There are many other people that can help you if you just need tax preparation but i think all businesses could use the experience. That cpa's had doing their work so the qualifications to become a cpa vary by state. They're generally the same but each state will have the details a little bit differently. I is an educational component their courses that all accountants take in accounting rules and procedures auditing management accounting tax law general business loss finance and very important one in business ethics. And i believe that's a more recent addition to the curriculum because there's been emphasis in the more recent years on having a profession. That's much more honest and open to people looking inside and seeing what they're doing anyway there's an educational component these days in many states. You have to have a master's degree to become a cpa. That was not the case until recently. Now there's also an experience component which varies by state and a national exam and then when a person qualifies by passing all those areas They have to register with their state. Licensing board to keep an active license. You have to renew it annually. And in north i think it's great that Everyone has to do forty hours of continuing education so that it keeps you up on all of the laws and in addition. You have to attest that you've had no convictions. In the court of law and ethical breaches in the past year given that you might wanna hire a cpa. That's what you'll be getting. I'd like to go over the ways of cpa can help you and your business when someone starts business a cpa can be a huge help. If you have an idea for a business or you think of what you wanna create one of your first conversation should be with a certified public accountant as many of you know everyone really needs to keep track of the business finances but there are many other ways that the cpa can help you first of all along with an attorney the cpa can help you. Think about the best structure for your business. That is whether you want to set up a limited liability company or a partnership or a corporation and the cpi should have experience so that he can he or she can say well. If you set up a partnership these might be your problems down the road or if you set up a corporation. Are you sure that this is what you wanna do for the future of your business. So that's a very interesting conversation. And once you decide that the cpa can help you in making a business. Plan particularly the Financial analysis because of that very important to figure out all aspects of the startup of the business and projecting the business into the future. So i would really recommend that. And then the cpa can also provide you with advice on the type of accounting software. You might want to have in your business and when you decide on a cpa. It may be important to have a conversation about whether that your software will interact with the one that the cpa's firm uses so that tax preparation will be quicker and more accurate and much cheaper. That's a very important thing to decide right in the beginning. Of course when you start your business you have to open a business bank account these. Cpa can help you in the business. Make sure that all of your procedures for your money. And for their revenues coming in and the expenses going out are set up so that they'll be easy to track and so that there's set up in a way that minimizes the possibility of fraud because the business owner is usually not the one who has his or her hands on all of the business procedures for example payroll for example paying bills and in the accounting world. The procedures that will help you protect your assets in the business are called internal controls and so if a your procedures is set up in a particular way it makes it much more difficult for anyone handling finances to steal the money of the business. I know that you go into business. You don't think about that. You don't think about an employee or a friend of an employee taking advantage of the good business that you have but this is very very common particularly in small businesses. When you have a one person performing multiple roles. I just think it's extremely important in the beginning to have a cpa. Just look over what you've set up and give you some pointers pudding that extra time and money into setting up business might help you protect thousands of dollars

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