No matter how small or large your business is, a tax and financial advisor is something worth investing in. However, choosing a CPA firm in Aurora is almost always a better choice than working with an enrolled agent or a typical accountant. Knowing the difference between these three specialists is the first step to ensure you have the right person in your corner when you need them the most.
What an Accountant Is and Does
Accountants are financial experts who do bookkeeping, handle accounting, prepare and audit financial statements, and help with financial analysis. In some cases, accountants will also have the expertise needed to offer you advice on taxes and help you prepare your tax returns.
However, while an accountant is capable of many things, they are not required to take a licensing exam, so they are not licensed within a state. Also, there are no requirements that an accountant continues with education throughout their career, although some choose to do so.
What a Certified Public Accountant Can Do
Certified public accountants, who are often part of a CPA firm in Aurora, are professional accountants who meet specific requirements by the state. Each of them is licensed and must remain current on tax laws to keep their license up to date. To be licensed, it’s required to pass the Uniform Certified Public Accountant Examination and meet other educational and work requirements to be designated a CPA.
The exam taken by an aspiring CPA takes place over many days and is very thorough. It includes all sorts of questions related to tax expertise and financial knowledge. Once a CPA is licensed, they have to comply with specific continuing education requirements to keep their licenses in place.
One of the things that only a CPA firm in Aurora can do is perform a mandatory audit for a publicly-traded company in the United States.
What an Enrolled Agent Is All About
An enrolled agent is different from an accountant or someone who works at a CPA firm in Aurora. This person is a specialist in taxes who is capable of representing taxpayers in front of the IRS. This expert has to qualify through passing a test that covers business and individual tax returns or by gaining experience as a former IRS employee.
Reasons to Choose a CPA Firm in Aurora
There is one primary reason that many small businesses choose to work with a CPA firm in Aurora rather than an accountant or an enrolled agent. These people are the most capable of representing you before the IRS if you are ever audited. While enrolled agents can also represent you, accountants who aren’t CPAs can represent you only in the most limited way.
The best CPA firm for your business will have an accountant and a bookkeeper so you can separate routine financial jobs form the higher-level financial analysis and tax help provided by a CPA. This firm will offer everything that the other types of experts can but with an added dose of knowledge and expertise to help ensure your success.