What are the Accounting and Other Responsibilities of a Chartered Professional Accountant?
If you want to run your business efficiently and maximize returns it achieves then it will be important to consult and take advice from a chartered professional accountant. The reason is that a chartered professional accountant (CPA) has the competency to perform several duties. Let us explore the details in following sections.
Duties Performed by a CPA
Financial statements are the best way of monitoring as well as measuring your company's performance. These statements include the balance sheet, income statement as well as the cash flow statement. A chartered professional accountant usually takes up the responsibility of creating all the financial statements so that these can be utilized by third parties as well as the management.
CPA also creates a projection so that the management can compare the same with actual performance and judge whether the company is moving in the right direction or not. Such projection can be made on a regular basis to ensure the company moves on the right path without any deviations.
Few of the other tasks a CPA performs include:
• Creation of financial statements
• Help the management with review of financial statements as well as in comprehending the performance
• Create a budget as per expectations of the management
• Develop forecasts on the basis of actual results company achieves and on the basis of assumptions for rest of the time left in a year
• Facilitate bookkeeping according to required accounting standards
• Help management in preparing for an audit or a review
A chartered professional accountant usually has vast industry experience and the CPA utilizes this experience to provide crucial advisory services in varied functional areas.
As for instance, if you are starting a new business, the CPA can assist with selection of the type of business you should start, the systems and processes that are to be implemented and the long-term objectives that the business should have.
Similarly, the advice provided by a CPA can be useful when you are looking to expand, divest or wind down. Additionally, you will find CPA's advice is helpful in:
- Management reporting
- Sale or purchase of any business
- Business valuation
- Improvement of processes
- Forecasting and budgeting
- Automation of process for information processing
HST and GST
HST/GST is one form of value-added tax having varied rates which depend upon rules prevalent at the place of supply for good and service your company provides.
A chartered professional accountant can assist you with registering for this program as well as help you in charging appropriate tax rate on the basis of what you are supplying and to whom you are supplying the same. Moreover, CPA can assist you in understanding the type of supplies that would qualify for what is known as income tax credit and can be claimed by your business.
To conclude we will say that a CPA play a crucial role in business success by providing useful inputs into various business processes and by managing accounts in the right manner.