Each business has a set of different operations and transactions that occur frequently. Although, a company might likely need a service specialized in dealing with those operations and keeping track of various trades. You can consult Herndon, VA CPA, for professional and experienced support if you need accounting services for your business.
Now, you might have heard about Certified Public Accountant and Financial Advisor. While these terms may initially confuse you, they are relatively simple to understand and employ for a particular business. You must be aware of some key differences between a CPA and a Financial advisor below.
What does a CPA do?
A CPA, or Certified Public Accountant, can help you and your business by providing suitable suggestions or advice about financial operations. A CPA can help an individual, trade, or organization plan the economic aims they hope to achieve in the long run. These aims could be related to anything.
For instance, an individual may have a financial goal to save money and buy a place of their own within a few years, or a business might plan to maximize its profits by planning taxes. Either way, a CPA can provide significant help.
What is the role of a financial advisor?
A financial advisor has sole expertise in money matters, finances, and investments. The financial advisor might be able to help an individual or a business with crucial decisions about the finances. You can employ a financial advisor as an independent officer, or your company can hire them as a collective advisor for the entire firm.
The need for a financial advisor can occur in many instances. For example, if you receive an inheritance from your parents or grandparents, it would become necessary to hire a financial advisor. Any matter or issue that involves finances or an object related to finances would be best handled by a financial advisor.
What is the difference between a CPA and a financial advisor?
A CPA can help you deal with matters like tax preparation or credits, the implication of your investments concerning taxation, tracking expenses and transactions, etc. A CPA can provide significant support regarding taxation and other financial operations related to a business or an individual.
On the contrary, a financial advisor can advise you on taxation and finances. They can also help you plan your expenses or finances to reach a particular goal. However, they might redirect you to a CPA. A financial advisor only specializes in providing directions and advice or suggestions. They cannot help you as a CPA would.