![]() ![]() External Audit: What’s the Difference?” provides an in-depth explanation of auditing for any curious entrepreneur. ![]() EA publication titled “Internal Audit vs. There are two types of audits, namely internal and external. In a nutshell, an audit is an official inspection of a business’s operations, processes, or financial records. ![]() Audit PlanningĬPAs are also responsible for planning and successfully conducting financial audits for a business. ![]() This includes tasks such as creating budgets, financial projections, and cash flow forecasts. CPAs use their expertise in accounting and finance to analyze financial data and make informed predictions about a business’s future financial performance. Financial forecasting is the process of estimating future financial performance based on historical data gleaned from the business’s financial statements and current trends. While bookkeeping may entail generating financial statements, it is the job of a CPA to decipher the raw data present in the financial statements into meaningful information for the business. Financial ForecastingĬertified Public Accountants (CPAs) play a critical role in financial forecasting for businesses and organizations. CPAs can help entrepreneurs plan in advance, providing strategic advice throughout the fiscal year to maximize tax savings. Therefore, they can take over the responsibility of the business’ taxes, ensuring that the business is operating in compliance with tax regulations, as well as calculating taxes and minimizing the business’ tax liability. Taxation is incredibly tedious and involves complex legal maneuvering, all of which a CPA is deeply familiar with as part of their training and education. One of the main duties of a CPA is preparing for tax season. Professional Responsibilities of CPAs Tax Planning This includes tasks such as calculating and withholding taxes, deductions, and other deductions from employee paychecks, preparing and issuing paychecks or direct deposits, and maintaining records of all payroll transactions. They are responsible for ensuring that all employees are paid accurately and on time. Payroll Managementīookkeepers play a crucial role in managing payroll for a business or organization. While it certainly falls within their range of duties, generating financial statements is still a difficult responsibility and requires experience and industry expertise. Another important factor to note is that not all bookkeepers are capable of generating financial statements. The bookkeeper’s responsibility ends when the records have been created and maintained. It is important to note that while bookkeepers can certainly generate a business’ financial statements, they cannot provide any analytical feedback or opinions pertaining to the contents of the statements. A bookkeeper’s primary duty is to record and compile financial information, and financial statements fall right in their wheelhouse. Financial statements in essence are a formal, historical record of the business’ finances that can be used to evaluate business health and performance. Financial statements contain essential financial information such as details of assets, liabilities, income, expenses, etc. Preparation of Financial StatementsĪccording to Expertise Accelerated publication titled “The Guide to the Four Basic Financial Statements”, Financial statements are a record of a business’s finances over a period of time. Any competitive business needs a dedicated bookkeeper to keep its financial data in order so that the company does not run into issues like erroneous financial data entry or misplaced financial records. For the most part, a bookkeeper’s work is more about data collection, categorization, and preservation. Tasks such as recording financial transactions and reconciling bank statements fall under a bookkeeper’s responsibilities. Professional Responsibilities of Bookkeepers Accurate Maintenance of Financial RecordsĪs the name suggests, the primary responsibility of a bookkeeper is to “keep” the books i.e., accurately and regularly maintain the data within the business’s books of accounts. Expertise Accelerated, The One-Stop-Shop for Your Accounting Needs.Accurate Maintenance of Financial Records.Professional Responsibilities of Bookkeepers. ![]()
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