A Certified Public Accountant earns the title of CPA after enrolling in postgraduate training for accountants and then passing the Uniform CPA exam. One major difference between CPAs and staff accountants is that postgraduate training enables Certified Public Accountants to provide consultation services on tax laws and detailed financial advice to a company’s board of directors.
Why Are CPAs Important?
1. Investors Rely On CPAs to Perform Business Valuations
A company that’s experiencing a wave of success can dominate its industry by buying out smaller competitors to increase its market share. Purchasing a business or company requires a thorough analysis of its assets, liabilities, and cash flow. Certified Public Accountants also perform assurance, a process that involves the verification of information presented on financial statements, to ensure that the investor gets value for their money during the business acquisition
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2. CPAs Can Track Embezzlement Of A Company’s Revenues through Forensic Accounting
Forensic accounting is the analysis of financial transactions to identify any irregularities that indicate theft of a company’s resources. CPAs scrutinize financial statements for missing entries on ledgers, suspicious transactions due to inflated prices, and identifying transactions related to debtors or creditors with questionable backgrounds.
3. Management Relies on CPAs to Provide Sound Advice on Risk Assessment
Nowadays, tech companies produce a premium product along with a lighter version to capture both high-end and mid-range markets. Apple, for instance, launched the iPhone 12 at a retail price of $1,100 while the mini version costs $700.
A company that plans to adopt a similar rollout for its products needs CPAs to advise them on whether the risk is viable. The Certified Public Accountant will assess the production costs and expected revenues for each product version before declaring a verdict.
Will Accounting Software Replace CPAs?
Artificial Intelligence applications have an amazing ability to learn skills and gather information from humans, while also performing complex tasks with a zero margin of error. However, humans are still necessary and won’t lose their jobs to accounting software due to the following reasons:
1. Accounting Software Can Only Produce Numerical Information
Accounting software can produce accurate results when performing a business valuation for investors interested in purchasing a company. However, a CPA can offer crucial information that cannot be captured numerically.
A CPA can offer operational analysis, understand the position of the company relative to its market, and support valuation of more esoteric measures about brand, risk and reputation.
2. Work Experience Is Only Transferable Between Human Beings
A college undergraduate student looking to gain practical experience will work as an intern at an accounting firm. Despite the presence of QuickBooks, the intern requires a skilled colleague to train them on how to use the software to perform various accounting functions.
Certified Public Accounting Is A Highly Rewarding Career
A career in certified public accounting (CPA) is a highly rewarding one. CPAs are in high demand and they command high salaries. They also enjoy job security and good working conditions.
Becoming a CPA is not an easy task, however. It requires passing a difficult exam and completing a certain amount of continuing education credits every year. But if you're up for the challenge, a career in CPA is a great choice.
Why You Should Become A Cannabis CPA?
The cannabis industry is one of the fastest-growing industries in the United States. As more and more states legalize cannabis for medical and recreational use, the demand for accounting and financial services is expected to rise. Cannabis CPAs are in high demand and can command higher fees than traditional CPAs. Here are three reasons why you should consider becoming a cannabis CPA:
1. You can command higher fees.
As a cannabis CPA, you can command higher fees than traditional CPAs. This is because the cannabis industry is still relatively new and there is a lot of demand for accounting and financial services.
2. You can help businesses navigate the complex regulatory landscape.
Cannabis CPAs help businesses navigate the complex regulatory landscape of segregated state markets. With a deep understanding of the tax code and financial reporting requirements, they can help cannabis businesses stay compliant and make sound financial decisions.
Cannabis CPAs also have experience dealing with 280E and other regulations that make it difficult for cannabis businesses to access traditional banking services. By working with a cannabis accountant, businesses can find creative solutions to banking and financial challenges.
3. The cannabis industry is growing rapidly
A major reason you should think about becoming a cannabis CPA is that the cannabis industry is growing rapidly. In 2020, the legal cannabis industry was worth $11.6 billion and is projected to grow to $25 billion by 2025 (https://www.statista.com/statistics/933384/legal-cannabis-sales-forecast-us/). This industry growth means that there will be an increasing demand for accountants who are familiar with the unique issues faced by cannabis businesses.
Becoming a cannabis CPA can be a great way to differentiate yourself in the job market. With your specialized knowledge, you will be able to provide valuable insights to cannabis businesses that other accountants may not be able to provide. Furthermore, as the industry grows, there will be more opportunities for you to advance your career. So if you're looking for a challenging and exciting career in accounting, becoming a cannabis accountant is a great option to consider.
How To Become A Cannabis CPA
One of the major questions people who are interested in becoming cannabis accountants ask is whether they need special training or certification before entering the industry. The short answer is no, but that doesn’t mean accountants don’t have a steep learning curve.
Cannabis accounting is a growing field, as more and more states legalize marijuana. If you're interested in this field, there are a few things you need to know. First, you need to have a strong background in accounting and finance. You also need to be comfortable working with clients in the cannabis industry, as this can be a highly regulated and sensitive industry. Finally, you need to be up to date on the latest changes in cannabis laws, as these can vary from state to state.
The bottom line is that while you don’t HAVE to take any special classes, A Certified Public Accountant must make a commitment to gaining and sustaining significant specialized knowledge regarding tax Code Section 280E, internal controls for a cash-based or cash-intensive business, and the ins and outs of the cannabis industry under current regulatory conditions.
Indiva Advisors, LLP Is Your Cannabis Accounting Solution
As the cannabis industry continues to grow, so does the need for specialized accounting and financial services. Indiva Advisors is a cannabis accounting firm that provides tailored services to meet the unique needs of the industry. We offer a full range of accounting, bookkeeping, and tax services to help our clients stay compliant and grow their businesses.
Contact us today to learn more about how we can help you take your business to the next level.