Relationship with your CPA1. ConfidentialA client MUST be able to trust their accountant. By law, only an actively registered CPA can refer to themselves as an Accountant. While a CPA can represent a taxpayer to the IRS, they have no ‘legal priviledge’ between clients and accountants. They can be compelled to disclose to a legally appointed authority. However, this does not mean that there is no confidentiality - the wants and needs of the client are paramount, confidential and sacrosanct. Trust is the foundation of the relationship. 2. Ability and knowledgeIt takes about 7 years to qualify as a CPA. This starts with a Master’s degree, then the qualifying exam and lastly various requirements (depending on what licence) for pre-licence (initial) experience. Once a licenced status has been attained you still have a newly-qualified CPA. A CPA tends to accumulate experience over the period of their career. The licence can be confirmed by reference to the Califonia Board of Accounting website at www.dca.ca.gov/cba. This cannot be done for non-cpa practitioners.While this is no guarantee of ability the consumer knows that it is not just a 6 weeks course. 3. CareAs a member of the accounting profession, a CPA owes 3 duties to: a. society b. the profession c. the clientPlease note that the CPA themself is NOT on this list. A CPA will make a fair living - based on the barriers to entry listed in 2 above. However, contingent fees (unlike attorneys) are not acceptable to the accounting profession. CPA’s are subject to a code of ethics and have to pass an exam requirement and undertake CPE requirements each time they renew their licence.4. Breadth and Depth - DimensionsEducation (by definition) includes a study to a defined depth and breadth. The alternative is experience - which depends upon where you have been - there is no guarantee that experience is good experience. The answer? - build experience upon the foundation of education. This is what a CPA does.The duty of a CPA is to undertake only work for which they judge themselves capable. Example: A taxpreparer fills out an IRS form and skates around things that they do not understand - because they do not understand it. Hey, why should they worry - as long as you pay their fee - after all the client does not know (they trust the taxpreparer).
Relationship with your CPA1. ConfidentialA client MUST be able to trust their accountant. By law, only an actively registered CPA can refer to themselves as an Accountant. While a CPA can represent a taxpayer to the IRS, they have no ‘legal priviledge’ between clients and accountants. They can be compelled to disclose to a legally appointed authority. However, this does not mean that there is no confidentiality - the wants and needs of the client are paramount, confidential and sacrosanct. Trust is the foundation of the relationship. 2. Ability and knowledgeIt takes about 7 years to qualify as a CPA. This starts with a Master’s degree, then the qualifying exam and lastly various requirements (depending on what licence) for pre-licence (initial) experience. Once a licenced status has been attained you still have a newly-qualified CPA. A CPA tends to accumulate experience over the period of their career. The licence can be confirmed by reference to the Califonia Board of Accounting website at www.dca.ca.gov/cba. This cannot be done for non-cpa practitioners.While this is no guarantee of ability the consumer knows that it is not just a 6 weeks course. 3. CareAs a member of the accounting profession, a CPA owes 3 duties to: a. society b. the profession c. the clientPlease note that the CPA themself is NOT on this list. A CPA will make a fair living - based on the barriers to entry listed in 2 above. However, contingent fees (unlike attorneys) are not acceptable to the accounting profession. CPA’s are subject to a code of ethics and have to pass an exam requirement and undertake CPE requirements each time they renew their licence.4. Breadth and Depth - DimensionsEducation (by definition) includes a study to a defined depth and breadth. The alternative is experience - which depends upon where you have been - there is no guarantee that experience is good experience. The answer? - build experience upon the foundation of education. This is what a CPA does.The duty of a CPA is to undertake only work for which they judge themselves capable. Example: A taxpreparer fills out an IRS form and skates around things that they do not understand - because they do not understand it. Hey, why should they worry - as long as you pay their fee - after all the client does not know (they trust the taxpreparer).