Choosing the Right Financial Professional

As you already know there are an array of professionals offering specific financial services from financial advisors, accountant's and CPAs, forensic accountants, estate planners, venture capitalists, and other practitioners in the field of finance. After reading this article you should have a better understanding of the differences between the various people that help to maintain your financial records. Many people assume that there are only bookkeepers and CPA's, but there are many individuals that fall inbetween with a range of skills. Keeping organized business finances is important for the life of the company. Finding the right person to sort proficiently through all the information and transactions requires adequate knowledge of business transactions and the skills to do the job efficiently, and in a respective amount of time. Regarding business finance management within an organization, it has been said that, “Studies show good accounting is good business, frequency and quality of a company's accounting directly correlates to survival.” Following is a list of some financial professionals available to help manage business finances. Keep in mind that there are a variety of financial professionals out there, as in the examples above. Along with other financial professional, many accountants and CPA’s perform a wide variety of financial activities. Bookkeepers: Whether hiring a bookkeeper or working with an outside bookkeeping company, be sure to choose a bookkeeper that is competent and knowledgeable. Bookkeepers have a varied level of skill. There are bookkeepers that understand most of the principles of accounting and there are bookkeepers who do not. Some bookkeepers will understand how to manage Accounts Receivable, Accounts Payable or Payroll but might not understand how the accounts on a “Chart of Accounts” (COA) relate to each other. The benefit of hiring a bookkeeper is the lower cost compared to other financial professionals. If working with an outside accounting firm for accounting services, they may have bookkeepers on staff at much lower fees than an accountant's rates. These bookkeepers would come in on a regular basis to your office to enter your transactions or handle the records off-site at the accounting firm. Accountants: Higher level of business finances and transactions can commonly be over-the-head of most bookkeepers. A good idea is to contact an accountant to help with these needs. Accountants are educated in understanding accounting functions and a variety of services including tax preparation, forensic accounting, job costing and analysis, . Contact an accountant to help determine what you need. You may only need a minimal amount of monthly or quarterly bookkeeping and other accounting functions. An accountant can help you to understand this. If you require certain services the specific accountant is not as skilled at or does not have a license for, the accountant will likely refer you to a CPA they partner with or have on staff. Use an on-staff accountant if your transactions are proprietarily complicated and require a skill higher than a general bookkeeper. Most of the time however an outside accountant that handles quarterly reporting and functions, tax planning and reporting is all you need. Certified Public Accountants (CPA): A Certified Public Accountant will have the same qualifications of an accountant and a bookkeeper. CPA’s as well as many well skilled accountants, complete the required financial work at hand much more efficiently with a higher level of knowledge and understanding. CPAs are licensed in the state they do business in and require a rigorous educational background along with continued education to maintain the CPA license. CPA services come at a higher cost than bookkeeping or accounting services. CPA’s can perform internal audits for a business and handle many other financial matters such as tax preparations, estate planning, accounting processes and more. You may need an on-staff bookkeeper or bookkeeping services through an accounting firm depending on the volume of business transactions. You may only need an accountant for bookkeeping training or general accounting services, quarterly reporting, tax planning and tax preparation. Most accountants offer one hour of free consultation to help you identify and understand these needs. Most small companies only need a minimal amount of bookkeeping quarterly and the accountant to handle most accounting functions, tax planning and tax preparation. If you are a larger business or are an individual with a complex level of finances you may be referred to a CPA. A CPA can review tax preparations that a qualified accountant has completed, then review and stamp the return for submittal. Contact an accountant to help determine the needs of the business and acquire guidance on managing your business finances. 2009-06-08T21:08:21Z

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choosing-the-right-financial-professional

2009-06-12T08:40:05Z

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This article lays out an understanding of various financial professionals to work with for various financial management needs. Understanding the differences between each financial professional that manage business finances is important to understand.

Choosing the Right Financial Professional

2009-06-12T15:41:08Z