CFO services | What To Look For In An Accountant
There are many things for entrepreneurs to consider when hiring an accountant for their business says CFO services. The right accountant will allow an entrepreneur to have the right tax plan, that can save them thousands of dollars at a minimum each year. However, how to find the right accountant who will do this will be the challenge. In order to help entrepreneurs find the right accountant, they need to know the difference between undesignated accountants and Chartered professional accountants.
Many entrepreneurs might be very surprised to hear that accountants that are undesignated can still start and operate an accounting firm. It is not just chartered professional accountants who can work in the accounting field, however chartered professional accountants are much more skilled. The difference between an undesignated accountant and a chartered professional accountant is the level of experience they have. In order to obtain a CPA designation, after the seven year undergraduate accounting degree, accountants must work for three years in an accounting firm as an accountant, apprenticing with a chartered professional accountant. The chartered professional accountants will oversee all of the work that the accountant is doing, ensuring they are doing it properly and efficiently.
CFO services says that in addition to working forty hours a week in an accounting firm, accountants going through the chartered professional accounting program also will have additional classes, assignments and tests that they have to do in the evenings and the weekends. While the undergraduate degree was full of theoretical knowledge, the CPA program and the courses that they have to take as part of it is going to allow the accountant to gain valuable practical experience as well. It is like the difference between learning about the income tax act, and actually utilizing it with customers on their financial statements.
The additional coursework, assignments and tests that they are doing in the evening and the weekends are also mimicking real life situations, so these accounting students are gaining even more practical experience than they would have otherwise. All of this practical experience makes accountants that graduate from the chartered professional accounting program far more knowledgeable than they were with just an undergraduate degree.
Since the pass rate for this CPA program is very low, an estimated 50%, CFO services says that entrepreneurs should consider who is the best accountant for their business, someone who has just completed their undergraduate degree, and has a bunch of theoretical knowledge with no practical experience, or someone who has completed their chartered professional accounting designation, and has had three years of practical knowledge under the training of another chartered professional accountants.
When entrepreneurs are looking for the best professional to work with when it comes to accounting, they should ensure that their accountant is a chartered professional accountant, so that they can end up with the right one that can help their business significantly. The right accountant will help an entrepreneur significantly grow their business.
CFO services | What To Look For In An Accountant
The reason why is very important for an entrepreneur to find the right accountant, is because accountants do so many important things for businesses. They will develop a tax plan that can significantly help an entrepreneur save thousands of dollars on taxes each year, as well as create a business plan that can help an entrepreneur avoid the three most common reasons why businesses fail. If they hire an accountant that does not have the right skills, they can end up paying a lot of money for someone who is not only not significantly helping their business, but possibly harming it at the same time.
As Red Adair, a specialist in extinguishing and capping oil well fires has said ìif you think it is expensive to hire a professional to do the job, wait until you hire an amateur.î Hiring an undesignated accountant is very similar to that. For example, CFO Services says people think they are saving money with an undesignated accountant, and they end up taking twice as long to do the financial statements of the business, forcing an entrepreneur to pay even more for the accounting then they would had they hired to chartered professional accountant in the first place. Chartered professional accountants might have a higher hourly rate, but they will be able to do the job efficiently, as well as correctly.
It is also very important for entrepreneurs to understand that a chartered professional accountant has the skills and the experience creating a business plan. With half of all entrepreneurs in Canada failing, and the three most common reasons for failure is running out of money, not finding the right market for their product, and not having the right team, all of these things can be avoided with the right business plan. CFO services says that hiring an undesignated accountant means that they end up with someone who is potentially unable to complete business plans efficiently or effectively. Hiring a chartered professional accountants, entrepreneurs can ensure they are going to end up with the business plan that can be significant in helping them avoid the three reasons why businesses fail. The right accountant can literally help entrepreneurs avoid the reasons why they have failed.
In order to find chartered professional accountants, entrepreneurs need to know what they are looking for in the firm when they find an accountant they want to use. If they have any of the following designations in the actual name of the business, chartered professional accountants, professional association or the following letters CPA, CGA, CA, CMA, or LLP. These are all indications that the firm has a designated chartered professional accountant. Nondesignated firms cannot use those indicators in their name.
Looking for the right chartered professional accountant is very important to entrepreneurs, but as long as they know what to look for says CFO services, will end up with the best professional to work with that can have a positive and lasting effects on their business.