The Role of the CPA
Many times people fail to really understand the role of the CPA in the overall scheme of their financial situation. They either do not give them enough trust or too much.
The best way to understand the role of the CPA is to understand the nature of accountancy. Accountancy does not involve the creation of something new and unique. It would not be considered an artistic field. What accountancy involves is the determination of reality. It examines the real situation that exists. For example, if an accountant is doing an inventory of the total number of widgets in your warehouse for an audit, they will arrive at the exact numbers that are there. If that number does not match the number you would like it to be is not the concern of the accountant. It is the real situation with which they are concerned.
This is where too many people go astray. They are expecting the CPA to give them answers and what they are going to get is information. This is not to say that the CPA with their experience and training can not answer questions about options. They can be a good source of counsel, but they are not the decision makers. The CPA license requirements are very specific about Profession Ethics and this is for good cause.
The Certified Public Account has followed a program of education, experience, and examination to become certified. Along the way, they have come to understand ethics and they are subject to several legal penalties for malpractice. Although, they can offer guidance and advice that can be helpful, they can’t take the responsibility for the ultimate decisions that impact your life. The client should not ask them to do this nor expect it of them. Decisions about such critical matters are always left to the clients with the CPA providing advice and information.
The area of taxation has become so complex. The CPA has a role in the preparation of tax reports and can set up tax shelters. The tax implications of just about every major financial management decision that you make will have an impact on your future. A CPA who can keep you abreast of these implications is extremely valuable. Never overlook the tax role of your CPA.
Many people view the role of the CPA as something for richer Men and bigger business. This is a mistake. The most important financial decisions are the ones that impact you and your own personal situation. Long term management and such things as taxation and estate planning are not for the very rich only. The role of the Certified Public Accountant is to be the accountant of the public.