Many entrepreneurs do not even know the difference between an accountant and a chartered professional accountants says CFO services. The reason why is extremely important is that a chartered professional accountant is someone with a larger knowledge base, and can help entrepreneurs allot better then people with just an accounting degree. When entrepreneurs are looking for someone to help them with one of the most significant investments they are ever going to have, they should look for the best professional possible.
People who are accountants have completed a four-year undergraduate degree. And people are chartered professional accountants have not only completed their four-year undergraduate degree, they have also spent three years articling with chartered professional accountants, and continuing to complete coursework in their spare time. The chartered professional accountants’ designation is a program that is designed to prepare accountants for actual work on real-life files, and difficult situations. CFO services says that the pass rate for the CPA designation is very low, and while the results are not published, the estimated pass rate for the program is about 50%. Not a lot of people complete it is, taking people with the chartered professional accountant designation rare and very knowledgeable.
One of the reasons why the chartered professional accountant designation program is so beneficial says CFO services, is because it replicates the difficulties with making the real life decisions, and working on real-life files. It is difficult and designed to be that way. It is going to force the students to continue to be doing coursework at the same time as working full time and accounting firm as an accountant. At the same time, the problems that it gives the students to work on, are designed to replicate real-life situations, which will prepare them for working with real entrepreneurs’ livelihood.
Ultimately, when entrepreneurs are choosing which accountants they want to work with, do they want to choose an accountant who started the chartered professional accounting program but did not complete it, or one who was able to finish the entire designation? The knowledgebase is extremely different, an entrepreneur should be looking for the most knowledgeable business professional they possibly can. Even though an accountant may charge a lower hourly rate, business owners should not try to save money on the accounting fee, because a great chartered professional accountant will help them minimize taxes significantly. While an accountant graduate, maybe less per hour, but will come up with an inefficient tax strategy for a business owner, costing them thousands or tens of thousands of dollars a year and increase tax payments.
Choosing the right business professional is very important, which is why an entrepreneur should ensure that their accountant is a chartered professional accountant designate and that they can ensure they will do the best possible job for their business, helping them become successful, as well as minimize the taxes that they are going to have to pay in their business, which going to impact not only their cash flow, but entrepreneurs ability to save money for the future.
CFO services | Are All Accountants CPAs
Many business owners are not aware that not all accountants have the same level of expertise says CFO services. There are accountants, who have completed their undergraduate degree in business, and then chartered professional accountant designateís who have completed their undergraduate degree, and also completed the three-year chartered professional accountants designation. There is a huge difference between the two, and when entrepreneurs know the difference, they will be able to make an informed decision that can positively impact their business.
Many accountants will overplay their undergraduate degree and hopes that they will be able to attract clients, without over disclosing that they have not completed their CPA designation. Business owners may hear them say things like they have majored in accounting, that they have completed their accounting degree, and have experience in the CPA program. While this sounds impressive, entrepreneurs should look for certain signs that will tell them that they have their chartered professional designate to be sure that they have the most knowledge possible.
CFO services says that entrepreneurs who are looking for a chartered professional designate should look for a CPA certificate on the wall along with the business degree, but if that is not possible to find, entrepreneurs may be able to do a quick Google search in order to tell if their accounting firm is a chartered professional accounting firm. Ways that they can tell this, is if the firm has a professional association in the title, or if they use any of the following acronyms: CPA, CGA, CMA or CA. If businesses also have the letters LLP after the company name, those are all good indications that the business that they are dealing with is a chartered professional accountant.
Many people might wonder if that is a very surefire way of being able to tell that an accountant is a chartered professional, says CFO services. In the reason why this works, is because these accountants have worked extremely hard, seven years of the very minimum in order to achieve that designation, there is little chance that they are going to forget to include the most important information about the company in the company name.
Many entrepreneurs believe that choosing a non-designate accountant will help them save money because they often have a lower hourly rate. However, business owners need to be aware that even though accountants that are not designate might have a cheaper hourly rate, they may take far more time to do the work, end up costing an entrepreneur far more money.
Rather than trying to find an inexpensive accountant, an entrepreneur should be concerned with finding a very skilled one, because they should know that the additional hourly rate that they might end up paying, will be worth it, when the chartered professional accountant is able to help save them thousands of dollars every year in a better and more efficient tax plan.