What does a CPA take care of? Features and benefits for your company

The term CPA in Colombia refers to certified Public Accountants, that is, an accountant who has a professional license granted by the country where he practices, which allows him to apply, manage and interpret the accounting of both an organization and an individual, in order to issue reports to management or third parties.

However, the CPAs in Colombia perform functions that relate to the management of the finances, as well as the recording of accounting transactions, making payments and collections, preparing financial reports and preparing budgets. Despite what is thought, CPAs not only exercise their functions in government institutions or in banking entities but they can also manage a company efficiently.

The services of a CPA in Bogotá is something that any entrepreneur will need any time in their company, either to meet the requirements of the bank, with government agencies or with their investors. Therefore, in this article we want to explain in detail what a CPA is responsible for and how it can benefit your company.

We explain how tax services work in Bogotá.

¿What does a CPA do?

A CPA is a professional who has met the minimum education requirements, thus accepting to comply with a strict code of ethics in the performance of their duties. For this reason, accountants who have become a CPA have a higher position in view of their colleagues, regulators, customers and business contacts. Therefore, it is the most versatile and sought-after credential among accountants, as defined by the 2013 Robert Half report on Accounting and Finance.

Among the main functions of a CPA are:

  1. Preparation of financial reports, vital for decision making.
  2. Application of benefits and dividend reports.
  3. Certification of returns for tax payments.
  4. Accounting systems set up.
  5. Bookkeeping maintenance

However, although bookkeeping encompasses a wide range of tasks, including auditing, taxes, accounting and consulting for organizations; there are some functions that can only be executed by a certified accountant:

  1. Prepare audited or revised financial statements.
  2. Submit reports.
  3. Represent clients before tax office.

Requirements to obtain the license:

 In general, to obtain the CPA degree in Colombia it is necessary to meet some educational requirements and previous work experience. Here we explain what these points are:

  1. Accounting degree of an accredited university.
  2. Work experience under the supervision of a licensed CPA.
  3. Comply with the requirements of continuing education.

Likewise, and based on Law 43 of 1990 which regulates the profession of public accountants at the national level, the following requirements are established (in the third article), for the execution of their functions and the accreditation obtention:

Registration as a Public Accountant will be accredited by means of a professional card that will be issued by the Central Board of Accountants. (…) To be registered as a Public Accountant it is necessary to be a Colombian national in the exercise of civil rights, or foreigners domiciled in Colombia with not less than three (3) years prior to the respective application for registration and that meets the following requirements: 

  1. To have obtained the title of Public Accountant in a Colombian university authorized by the government to confer such title, in accordance with the regulatory norms of university teaching of the subject, in addition to accrediting experience in activities related to accounting science in general no less than one (1) year and acquired simultaneously with or after university studies.
  2. Or have obtained said title of Public Accountant or of an equivalent denomination, issued by foreign institutions of countries with which Colombia has concluded agreements on reciprocity of titles and endorsed by the government agency authorized for this purpose.

 Therefore, when you decide to hire a public accountant to deal with financial matters in your company, it is necessary that you validate their professional registration on the platform of the Central Board of Accountants.

Functions of a CPA:

As we have seen up to this point, CPAs in Bogotá can carry out multiple jobs and tasks: from audits, through consulting, to consulting with clients, who can be individuals, large corporations or small businesses. Therefore, the following are its most relevant services:

  1. Tax services: These include the filing and preparation of federal, state and local tax returns. It also includes working with organizations and individuals to minimize their tax obligations.
  2. Audit services: These services improve the quality of financial information, which is essential for decision making. It should be noted that in this process an objective evaluation of the economic and financial information is made.
  3. Management services: his service allows you to provide assistance to manage and monitor the daily activities of an individual or an organization. This provides strategic and far-reaching planning. In turn, this service includes insurance coordination, risk management, investment guidance and estate planning.

Importance of CPAs for companies

 Owners of small or large companies should know that hiring a CPA in Bogotá can be very advantageous for their business. As we have seen, their functions play an indispensable role in the management of commercial finance. In addition to supervising and managing accounting functions, they have the experience to provide general assessments of all facets of finance and manage each of these points:

  • Business analysis, growth planning and risk assessment.
  • Creation and configuration of the accounting system, suitable for each business.
  • Analysis of income, expenses and cash flow.
  • Creation of budgets and audits.
  • Preparation of the necessary financial statements.
  • Investment Management.

Similarly, the CPAs in Bogotá are constantly updated on national regulations, which allows them to prepare accurate tax returns for any situation, this provides planning strategies to your company, to solve any fiscal problem such as: debt settlement, returns, among other points.

Benefits of CPAs for companies:

 There are numerous benefits of working with a CPA in Bogotá, here are some of them:

  1. Expert financial advice: Working with a CPA allows an expert to examine business operations and advise with the most accurate financial and accounting decisions. They can also offer valuable advice to owners about important business decisions such as buying an asset or obtaining a loan.
  2. Industry experience: As you know each company is unique, so it is essential to have a CPA who fully understands the dynamics of the business. This gives results and guidance.
  3. Strategic tax planning: Tax planning allows you to reduce taxes by carefully considering company deductions and credits. In turn, this planning allows you to understand the records and generate considerable savings. That is, working with a CPA allows your company to take full advantage of the business dynamics, this gives results and guidance in good and bad economic times.

Know five reasons to opt for an accounting service in Bogotá.

High license degree

 The CPA in Colombia is accredited by the State to serve as an accountant. It should be noted that these services, which are aimed at the public, are normally regulated to protect the community and ensure that it receives the best deal. Given this, the State verifies that the professional has adequate preparation and can render his services efficiently, optimized and in accordance with the law. If the professional shows that he is trained, he will receive the degree to practice his profession.

With all this we can see that public accountants are indispensable in accounting and commercial services or systems, regardless of industry. CPAs in Colombia play an advisory and performance analysis role thinking about your business. If you are a business owner, make sure you have a CPA and request the best accounting service to financially manage your company.

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