By Dr. Thomas Ongallo
The Certified Public Accountant (CPA) qualification distinguishes licensed accounting professionals who are dedicated to public service. These professionals perform financial statement audits and other attestation
services to help inform investors about the financial health of firms. They give individuals and families with vital tax and financial planning information and assistance. CPAs provide tax, financial reporting, andadvice services to businesses and industries all over the world, allowing them to make better strategic decisions and achieve greater success. Certified public accountants, or CPAs, act as a third party to review the financials of a company for public disclosure. Accounting professionals require minimum number of hours of coursework, pass a tough multiple exams, and meet experience criteria in order to obtain a CPA license.
They must also pledge to continue studying throughout their lives and abide by a stringent Code of Professional Conduct that demands competence, objectivity, integrity, and independence. Certified public accountant (CPA) certification confirms an accountant’s skills in taxation, auditing, regulatory compliance, and financial analysis. Many employers prefer to hire accountants who possess CPA certification. By attaining a CPA license, accountants can boost their career outlook, job security, and earning potential.
1.1.1 Certified Public Accountant (CPA) firms
Certified Public Accountants (CPA) firms have witnessed transformation at a rate never seen before in the
profession during the last seven (7) to (ten) 10 years. With the advancement of automation and computer technology, machines have been able to perform the boring and compliance duties that CPAs have previously been spending the majority of their time on almost instantly. must transition into advising firms that provide customers with guidance and support that only a CPA can provide and, by the way, also handle tax returns and audits.
This is something that in my opinion the majority of us (CPA firms) do not do. Instead, we are attempting to turn our firms into tax return factories, where clients drop off data, never speak to anyone, and then return a few weeks later to sign their return. Notwithstanding, behind us are “Quacks,” invading the professional territory and taking away professional engagements at very low fees. To compete with these quacks, by nature is a big challenge.
1.1.2 Value advancement
When a client calls my firm, or any other for that matter, and inquires about tax return pricing, it’s critical that the CPA responds as follows: “Not only are you having a CPA prepare your return, but you will also
receive advice and guidance on how to plan for your financial future and what you can do to minimize your tax with us.” This is why the cost is as such. If you don’t want any of that help, you could be better off hiring a non-CPA or using Quacks to file your taxes.” To reflect this increased value, a CPA prepared return should cost twice as much as Quacks
Again in my opinion, most of us (CPA) firms are not bold enough in doing this because preparing taxreturns is a pleasurable experience. It is what CPAs have been taught and practiced throughout their careers. It is nothing to be ashamed of, looking at a tax return, analyzing it, and telling a client what they can do to reduce their taxes is a difficult task. To be able to give clients excellent advice, it needs years of training, dedication, true competence, and self-confidence. Isn’t that why CPAs began their careers in the first place, to assist people in achieving their financial objectives?
Yes, of course. However, while tax return preparation is still important, it is no longer sufficient. It’s time for us (CPAs) to take their careers to the next level. It is time to concentrate on the difficult aspects of the job, that is advice and make it the fundamental role of CPA firms. The initial step for businesses should be to meet with their clientele and develop relationships with them.
The initial step for businesses should be to meet with their clientele and develop relationships with them.
It is difficult to form a relationship with someone who drops off tax data then returns two weeks later to pick it up. It is also easier to prepare a return for someone if they are in the office and can promptlyrespond to the CPA’s inquiries rather than playing e-mail tag. The next and most difficult stage is to delegate the simple tax returns to the office’s less experienced CPAs. This is how students learn the fundamentals, and it’s how experienced CPAs free up time to concentrate on the most challenging and demanding clients as well as time to focus on attracting and maintaining new, value-oriented clients.
It is s also critical to have the appropriate mechanisms in place to augment and improve the firm’s processes. Remember that the goal for experienced CPAs is to spend the bulk of their time providing value to clients rather than printing, scanning, and PDFing. If the company is wasting too much time on administrative tasks, management should devote some time to studying goods that will improveefficiency or retaining companies who have more efficient work-flows. And for your information it should not take more than one and a half days to prepare a return once it is finalized.
1.1.3 Changing one’s perspective
The mindset, on the other hand, is crucial. CPAs need to conceive of themselves as the trusted advisors that they are, and they need to teach the next generation about the value of being one. Firms must position
themselves as problem-solving, value creating entities. They should promote themselves as a place where clients may get the much-needed advice they require. If CPAs succeed in doing so, the profession will be profitable and prosperous for many decades.