By Monica Hubler,
Full-Time Faculty, Purdue Global
Your lifelong dream has come true: you have started your own business. You did your research and your product will be a success. You have selected the entity type of a corporation and filed all the paper work to become registered with your state and the federal government. You go public. Your next step is to seek accounting assistance. Again, you do your research and hire a certified public accountant (CPA) to help with all those accounting rules and government regulations, but is your CPA up to date with all these rules and regulations to help protect your business from addition taxes or regulations and possible bankruptcy?
One key issue is to see how your CPA can help protect you and the business from higher taxes. Your CPA could find the best ways to limit your taxes, and this is done by staying up-to-date on all the changes in the tax laws, both federal and state. You and your CPA need to communicate the finances of the business and your future plans for the business. The CPA is the expert in tax matters and following the guidelines of the accounting profession such as GAAP (Generally Accepted Accounting Principles).
Along with the CPA being a tax expert, they are your financial advisor and could help to guide you and your business to future success. The CPA has resources that can be focused on your business. They have the ability to help steer you and your business through rough times and make suggestions to help keep your business running.
A CPA can be key to helping a business stay in compliance with rules, taxes, and any and all government regulations. They are always updating their knowledge and before they conduit an audit, they become familiar with the industry completely so a proper opinion can be issued regarding your business. They know what is required to have your business stay in compliance with SOX (Sarbanes-Oxley) act and are ahead of the curve with IFRS (International Financial Reporting Standards). These are all good reasons to look for a CPA—they are the experts for your business. To learn more about choosing the right CPA for your business, visit the Frequently Asked Questions section.
Interested in this career? Check out Purdue Global's business resources here.
Monica Hubler is a full-time faculty member