Many times we hear the abbreviation CPA, which stands for a certified public accountant. Usually we hear this abbreviation in conversations when people tell us about a friend or a relative who is a certified public accountant. Most people will nod their heads in approval to the news about your brother being an accountant, yet fewer people than you might think understand what an accountant can actually do for them. It seems like in many people’s minds, an accountant is most frequently associated with part of their employer’s administrative team, or with some big business. However, the truth is that accountants are able to help you plan your finances in ways that will allow you to save your money for acquisitions that produce more money and stay valuable.
“An accountant is a practitioner of accounting or accountancy, which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.”. We found this great definition on Wikipedia at http://en.wikipedia.org/wiki/Accountant and decided to share it with you here on this website. An accountant must pass the Uniform Certified Public Accountant Examination to qualify as an accounting professional.
You don’t have to be a business person to be able to benefit from the advice of a great accountant. The truth is, most people have never been taught in school how to manage money other than how to balance a simple checkbook, if that. Most people don’t keep personal financial statements reflecting their income to expense ratios. A financial statement is a great tool when it comes to getting to know your financial habits and how to improve them in order to keep more money in your pocket. This tool is useful not only to small businesses and big corporation,s but also to anyone who handles money on a daily basis.
A good certified public accountant can be an invaluable resource on ways to manage your finances so that there is always money for you at the end of each month. In some cases, accountants have suggested that we would benefit if we treat our finances the way a successful business treats its own finances, which is with great care and constant strive for accomplishing more with less. This does not imply that you have to compromise the quality of your life; it dimly implies that, by developing healthy financial habits, you will be able to set aside more money with which you could buy money-generating assets, and you could set a great personal example for your children to help them learn how to effectively manage their money when they grow up.
Many CPAs are also tax advisors. Some tax advisors deal mainly with preparing clients’ tax returns, which makes them really busy in the spring time. Others, however, have adopted a different approach to providing tax services: they sell strategy! Their business model is to develop a long term relationship with their clients, study their clients’ financial goals and help people bring these goals to realization via carefully planned step-by-step process that accounts for ways to save money on taxes and invest what has been saved into assets that make even more money.
We admit that such scenario sounds almost impossible to many people especially those whose income is entirely derived from a low paying job. Believe it or not, there are many cases in which low paid workers have put their minds into improving their financial situation and invested in the services of a tax strategist or tax coach.
You may also find it difficult to believe that many business owners don’t develop sound financial structures for their businesses, which is very often the reason why most businesses die within the first five years of their existence. Poor understanding of finances has been observed on many levels across society, therefore it is important to consider using the services of an experienced financial professional once you’ve decided that you want to have more control over your money and improve your life in a way that will lead to less work and more financial freedom.