No matter what we are doing in life, there are experts in every field that we can seek when we are stuck. For instance, if there’s an issue with the tap, we call a plumber. If we get sick, we go to a doctor. And if we need to build a house, we seek the help of civil engineers.
But what do business owners do when they need some strategic piece of advice, or if they want their taxation services or accounting services done? Quite naturally they would seek the help of financial experts. So a CPA in Santa Monica is the correct professional to go to at this point.
But small businesses like startups often hire general accountants instead of a CPA. This excerpt will deal with such a situation, and would also enlighten on the reasons behind such a decision.
Accountants vs CPAs- the difference
Let us first understand the differences between an accountant and a CPA before delving into the topic.
An accountant is someone who has complete knowledge of accounting and its related subjects. A person working as an accountant in a firm or a company is responsible for keeping track of all the financial transactions that undergoes daily and also keeps a record of all the transactions.
On the other hand, the job role of a CPA in Santa Monica goes beyond general accounting. They are responsible for much more than just recording financial transactions. They help with analysis, taxation services, and attestation services, and also help in providing sound financial advice for businesses to grow and thrive in the market.
Why do small businesses prefer hiring accountants?
Now let us look at some of the reasons why small businesses prefer hiring general accountants instead of CPAs-
● Work is less as compared to MNCs
When it comes to small businesses or startups, their work pressure is generally less as compared to a Multinational Corporation (MNC). As a result, their daily transactions are also limited and comparatively smaller in amounts. Hiring an accountant in such cases is beneficial as their expertise would be enough to handle the transactions of the business or the startup.
● Cost-effectiveness
Another one of the major reasons why small businesses prefer hiring general accountants is because they are much more affordable. Being a startup, it is an obvious fact that they wouldn’t have that much financial viability to afford a CPA. Instead, general accountants are much more cost-effective and also can perform their duties to the fulfillment of the company effectively and efficiently.
Hence, these are the basic reasons why small businesses prefer hiring a general accountant rather than a CPA in Santa Monica.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.