FAQs for selecting a CPA, do I need a CPA? CPA Qualifications?

CPAs are highly educated professionals, certified by their State CPA Governing Board of Accountancy, that must meet the educational and knowledge sufficiency requirements in order to be issued a license. State licensing requirements vary, but the minimum standard requirements include passing a background investigation, pass the Uniform Certified Public Accountant Examination, 150 semester units of college education, complete a three-semester hour Board-approved ethics course, pass an exam on the Board's Rules of Professional Conduct and one year of full-time accounting related experience, supervised by a CPA. 

To become a CPA in the United States, the candidate must sit for and pass the Uniform Certified Public Accountant Examination (Uniform CPA Exam), which is set by the American Institute of Certified Public Accountants (AICPA) and administered by the National Association of State Boards of Accountancy (NASBA). The Uniform CPA Exam consists of the following sections: Auditing and Attestation, Financial Accounting and Reporting, Regulation, and Business Environment Concepts.

CPAs are required to take continuing professional education courses toward continuing professional development to renew their license. This requirement is to ensure that CPAs are staying current with recent tax law pronouncements, and changes to the IRS Tax Code along with the Financial Accounting Standards Board (FASB) issuance of Accounting Standards Updates (ASU), which explains changes to U.S. Generally Accepted Accounting Principles or GAAP.

Bookkeeper: Anyone can be a bookkeeper, there is no educational, training or experience requirement. The range of experience can be a new individual or have years of experience. They typically specialize in the basic, day to day accounting transactions.

Accountant: Typically, an accountant will have a degree in accounting, whether it's an associate, bachelor's or master's degree. They have received formal education and will usually have more varied and detailed knowledge base than a bookkeeper. Of course, this will vary based upon their experience level. 

Certified Public Account or CPA: To be a CPA, an individual must meet educational, knowledge and experience requirements, including passing the CPA exam. Other requirements include passing a background check (state and federal), passing a professional ethics exam, and just as importantly, CPAs are required to take continuing professional education every year in order to renew their license and keep their accreditation, on an annual basis. This assures that every CPA in good standing stays current of the ever-changing tax laws, IRS tax code, and the Financial Accounting Standards Board pronouncements of changes and updates to Generally Accepted Accounting Standards detailed by GAAP.

Every CPA (based in the U.S.) is required to adhere to GAAP when preparing certified financial statements, which is required by certain regulatory agencies such as the Securities and Exchange Commission (SEC) and is typically required by business organizations where you are required to submit periodic financial statements, such as Financial Lenders, Commercial Banks and Investors. Adherence to GAAP assures that all certified financial statements are following the same rules and regulations and are adequately stated. Also of note, the Internal Revenue Service (IRS) has strict requirements for tax preparers, who are subject to significant fines if they do not adhere to competency and ethical standards. Did you know, for example, that a tax preparer must sign your tax return if they accept compensation for preparation of the return?  This makes the tax preparer responsible for the competency, accuracy and completeness of your return. Note: This does not always, mean that the taxpayer is not responsible for omissions or intent to defraud the IRS, as well as assessment of penalties and interest. 

Lastly, every CPA must continually adhere to their State Board of Accountancy's ethical statutes, as well take an ethics course and pass an exam, every two to three years, depending on their state's requirements. This assures that CPAs in good standing are aware of their ethical responsibilities to the public, consisting of Integrity, Objectivity, Professional competence and due care, Confidentiality, and Professional behavior. 

If you have concerns about your CPA, you may request proof of their license (State Boards issue an annual card noting the CPA's annual license expiration date). If you need to report a CPA who practices in Texas for being unprofessional, professional misconduct or you believe has violated the code of conduct, you can report the office or your complaint to the Texas State Board of Public Accountancy. 

The Public Accountancy Act, Chapter 901 of the Occupations Code, authorizes the Texas State Board of Public Accountancy (TSBPA) to investigate and prosecute allegations of professional misconduct against Certified Public Accountants from any source, including the public and other CPAs. You may visit the TSBPA to learn more or may file a complaint by clicking on the following link or visiting the following website:  https://www.tsbpa.texas.gov/enforcement/filing-complaint.

Or if you have any further questions, please feel free to contact the Enforcement Division:
     Enforcement Division
     Texas State Board of Public Accountancy
     505 E. Huntland Drive, Suite 380
     Austin, Texas 78752-3757
     Phone: 512-305-7866
     Facsimile; 512-305-7854
     Email: enforcement@tsbpa.texas.gov

Whether you need a Bookkeeper, Accountant or CPA depends on your specific requirements. Typically, the routine or basic day to day financial transactions can be performed by an experienced bookkeeper. 

However more detailed and complex transactions such as adjusting journal entries, account reconciliations, depreciation and amortization schedules, intercompany transactions, multiple currencies, and closing the monthly books and records in order to adequately prepare your financial statements, may require a seasoned accountant or CPA. Each situation is unique and discussing your needs with an experienced professional is your best bet. That is why Askew CPA Consulting Firm offers a complimentary consultation as well as varying fee rates depending on your requirements.

This firm offers a wide range of services as we seek to be a full-service accounting and consulting firm. Every phase of your business development requires a different skill set. Services include Business Formation assistance, business and personal Tax Preparation, Bookkeeping Services, Review of your books and records and assistance with organizing your files and accounting system, Set Up of your files, books and records and accounting software, assistance with preparing for an Audit, Lender's Due-diligence or Collateral Field Exam, Monthly or Quarterly Close of your books and records and compiling financial statements, and performing public audits and issuing certified financial statements. 

If you are a Lender or Investor seeking due-diligence assistance, credit analysis or an experienced collateral examiner (or whatever your specific credit requirements are), we've got you covered! This firm offers all of these services, performed in a timely and cost-efficient manner, and by a CPA that has over thirty years of financial, commercial lending and credit risk analysis experience. Call or schedule an online appointment today for a complimentary consultation, where your specific credit requirements and timeline will be addressed, and will include a customized proposal, that will include a 'deliverables' date, at a fixed rate. No hidden costs! 

Note: If there are unforeseen delays or complications in completing the engagement, rest assured that you will be notified in advance in order to determine the best course of action. In some instances, this may require more detailed analysis or testing in problematic areas or waiving certain testing requirements where appropriate. We will work together to ensure the best and most time-efficient outcome,