|
What Is
A CPA?
CPA stands for Certified
Public Accountant, although the term is much narrower than
the role many CPAs fulfill. Certified Professional Advisor,
as a leading CPA once proposed, is probably more apropos.
Because of stringent requirements for education, experience
and testing, most CPA's do indeed live up to the higher level
of respect they enjoy compared to other professionals, as
research tells us. Their keen ability to analyze data,
record it, interpret and compare it, make them a critical
ally in many if not most important personal and business
decisions. They tend to be more objective and independent,
as a result of their training as an auditor.
Most successful
companies have CPAs within the top inner circle of
management or advisors. Some large CPA firms have very large
influential worldwide business consulting practices, helping
companies to retool themselves in a quickly changing world.
The CPA’s role is also changing rapidly. Some changes make a
lot of sense for the CPA and consumer alike, such as the
CPA’s role as personal financial specialist. After all, CPAs
are good at relationships and serving clients, recognizing
needs and developing strategies after careful analysis and
consideration of many interrelated aspects of a client’s
financial life.
|
A CPA is more than a CPA?
A CPA is much more than its
definition of Certified Public Accountant. The term
certified refers to the licensing to carry on business as a
CPA and meeting the standards as promulgated by the American
Institute of CPAs and the various state societies.
To be initially licensed,
an individual must pass a rigorous examination, which is
uniform among the states, and then obtain a certain amount
of experience working for a firm which performs examinations
of financial statements and renders a report upon them. The
term public accountant refers to the role as an accountant,
who handles recordkeeping and reporting matters for the
public. However, the term CPA, in sum, means to most people
much more than these parts of certifed and public
accountant. A CPA is a very trusted advisor of both
individuals and of businesses.
CPAs are relied upon so
much because of not only their keen analytical and
decision-making skills but also their objectivity, integrity
and dedication to service. Many CPAs provide services well
beyond accounting, auditing and reporting. Some are business
and management consulting, information technology
consulting, tax planning and preparation, personal financial
planning, valuation services, elder care services, and
compliance. The consumer often expects a CPA to be
proficient at many specializations, even those just
indirectly related to the traditional role of an accountant.
The CPA's role has been quickly expanding, and one leading
CPA proposed that the term CPA more appropriately stand for
Certified Professional Advisor. The CPA profession is
currently grappling with how best to define the CPA in
today's world and whether to change the moniker CPA. One
preliminary recommendation of the AICPA for a new term to
encompass CPAs worldwide has met with much criticism within
the industry. Stay tuned for further developments.
|
