Frequently Asked Questions
If you are new here, welcome! Here are some answers to some frequently asked questions that I get:
What is a CPA?
A CPA is a Certified Public Accountant. The credential is regarded highly in the professional world, and represents a certain level of education, competence, and skills. CPAs are known to be well-respected business advisors, so if you know any, be sure to talk to them and learn something when you can! If you are interested in learning more about the certification, check out the American Institute of Certified Public Accountants FAQ page.
You are a CPA, does that mean you do taxes?
Not necessarily. While US income taxation (both personal and corporate) is tested on the CPA exam, not all CPAs practice taxes as the regular job.
But can you do my taxes?
I don’t do taxes too often, but if you have a simple tax return I can probably help or point you in the right direction.
How can you help me or my business?
Understanding how things work is very important to your personal finances, your career, or your business. Fortunately, there is tons of information available on the internet for you to learn new things. All that information comes at a cost however, the context might not be right for you. There are many qualitative aspects of these areas that aren’t talked about as much and are very important to applying the information, and there are many little things you can do to make yourself more knowledgeable, efficient, and successful in these areas. My goal is to create content that not only teaches important concepts, but gives you to interpret and apply that information to your situation.
Why did you become a CPA?
Every business needs an accountant and someone who can understand, analyze, and advise the business operations. Personally, I love teaching and understanding how things work, and being a CPA provides me with many career opportunities to work with individuals and businesses (large and small) in a role that I can enjoy.
As a CPA, do you work with other people?
ALL THE TIME. When working at a CPA in public accounting, you will interact with clients and colleagues (both above and below you). If you work in industry, you will need to report to different individuals like the CFO, CEO, or department heads. Collaboration, teamwork, and communication are key skills for a modern CPA. You really need to go out of your way to find yourself in a position where these skills aren’t critical to your success.
What type of work should I look for if I prefer to work by myself?
Generally, doing tax work involves less client interaction in the early stages, and can be scaled down to be more independent than other types of accounting work. In general, good managers will try to break down larger projects into smaller tasks that are more geared towards individual work in every type of professional service, but in my experience, you are most likely to be able to take work for yourself to go work on it independently while doing taxes. This applies specifically to smaller tax returns and likely won’t be the case if you are working on a public company’s return.
Can you teach me how to pay no taxes?
Sure, just don’t make any money. If you don’t make any money, there won’t be anything to pay taxes on. Joking aside, a starting point to paying less taxes is showing a lower amount of taxable income, which can be done by taking advantage of deductions (some of which may only be available to certain business structures). After that, qualifying for certain credits on taxable income will further reduce taxes.
Where can I work as a CPA?
Almost anywhere in the United States. Every business needs an accountant and someone to analyze the business operations, and tax returns need to be planned for and prepared. Businesses of different sizes will have different requirements and structures for their accounting needs: some may need only one outsourced accountant, while others may need an internal team of people, and an external audit firm, and a firm to help prepare the tax returns.
What is the difference between Public Accounting and Private Accounting?
Public accounting involves working with a firm to provide services to clients. CPAs generally perform audit, tax, and consulting services for their clients. Private accounting involves working directly for the organization as an employee. Each career path has different costs and benefits, and every accountant and CPA should evaluate what path is best for them.