Certified public accountants (CPAs) can assist organizations and individuals with various tasks related to finances, taxes, insurance, and more. Learn more about what a CPA can do to help you or your business and who provides oversight of these professionals.

What is a CPA?

A certified public accountant is a licensed professional accountant. Each state issues its own CPA licenses, and CPAs must hold a license in the state where they intend to practice. 

The CPA designation signifies a higher professional standard than others in the accounting industry. Those who want to become a CPA must pass an examination called the Uniform CPA exam. The Uniform CPA exam is known for being thorough and rigorous.

In addition to passing the Uniform CPA exam, people must meet specific work, education, and examination standards. They must hold a bachelor’s degree in finance, accounting, or business administration. They must also have at least two years of public accounting experience.

Certified public accountants can hold positions in public or corporate accounting. They may also fill executive positions, such as a company’s chief financial officer (CFO). 

Who Regulates CPAs?

In Kansas, the Kansas Board of Accountancy regulates CPAs. It is the regulatory body that carries out the laws and regulations that govern CPAs in this state. 

The mission of the Kansas Board of Accountancy is to identify accountants who have met state qualifications in higher education, experience, ability, and dedication. The Kansas Board of Accountancy offers information on taking the CPA examination, pre-evaluation of college credits, registration assistance, and more. 

What Can a CPA Do?

Certified public accountants can perform a wide range of services, including:

• Accounting
• Auditing
• Tax preparation
• Consulting

A CPA can work with corporations, non-profit organizations, small businesses, individuals, and governments. 

Generally, CPAs focus on three areas of specialization.

1. Tax services

A CPA may offer tax services to both organizations and individuals. They can file state, federal, and local tax returns and use their knowledge of tax laws to minimize their clients’ tax burdens. If a company or individual faces an IRS audit or questions from state or local authorities, the CPA will represent their clients in resolving the matter.

2. Audit and assurance services

Auditing is an evaluation of economic and financial information to ensure accuracy and adherence to generally accepted accounting principles.

Assurance services provide clarity and context for financial and non-financial information so that decision-makers can make informed choices. 

3. Management services

CPAs may assist with supervising and managing an organization or individual’s daily activities. CPAs can help people develop strategies to reach specific goals and make plans for the long term. Specific services a CPA may offer include”

• Cash management
• Budgeting
• Financial planning
• Preparing financial statements
• Risk management
• Investment guidance
• Estate planning
• Insurance coordination

Find a Wichita CPA Now

A CPA offers high-quality, knowledgeable support and guidance in various financial, insurance, and tax matters. If you are looking for a Wichita CPA, contact the team at Wichita Tax Advisor today to learn more about how we can assist you.

Your taxes are due, and you want them to be done the right way. When choosing to use a tax professional, there are a few options out there. Two of the most popular options to prepare your taxes are a Certified Public Accountant (CPA), or a tax preparer. These are not the same, and the most important difference between the two is that the CPA is a licensed tax professional, while the tax preparer is generally unlicensed. 

There are some other differences between the two, and understanding those differences will go a long way helping you decide what is the best fit for your unique tax situation. Both of these are suitable for filing your taxes, but depending on the complexity of your return, one might be a better fit than the other when looking for tax services in Wichita, Kansas. 

What Makes a CPA Different?

CPAs have to go through a challenging set of requirements to earn that licensing designation. In Kansas, potential CPAs have to complete 150 semester hours of college-level coursework that concentrates on accounting. Then they have to complete and pass multiple exams before they can apply for the CPA certificate. They also must accumulate the required hours of experience, and once all those steps are completed, can apply for a license.

Because of these guidelines, CPAs generally have a much more extensive background in accounting. Some CPAs specialize in specific accounting fields, but if they focus on tax accounting, they’re going to bring extensive knowledge to the table. Also, if your tax return has anything out of the ordinary, or is more complex than simply filing your W-2, the CPA is going to be better equipped for those situations.

What Can CPAs Do That Tax Preparers Can’t?

Tax preparers are typically less expensive than CPAs when filing tax returns, but an unlicensed tax preparer could essentially be anybody that advertises themselves as one. CPAs are well equipped to perform any number of tax returns, no matter the complexity. CPAs are also generally more focused on providing ongoing services in other areas of accounting, which can provide assistance with other financial matters.

It’s also important to note that non-licensed tax preparers cannot represent you in the event of an audit by the IRS. CPAs are always approved to represent their clients through the audit process, and that can reduce a lot of stress for the taxpayer. Tax preparers can take some extra steps to earn distinction as an Enrolled Agent (EA), which allows them to represent their clients in the case of an audit. However, if your tax preparer hasn’t taken these steps, the taxpayer is on their own in that audit.

CPAs are the more knowledgeable and certified option in most cases, but tax preparers might be all that’s needed in the case of some of the simpler tax filings. For more information on the differences between a tax preparer and a CPA – and to help determine which is right for you – reach out to the experts at Wichita Tax Advisor today.