Crime Prevention With CPA

A good CPA can protect your money from money laundering. Money laundering is the process of putting money from criminal activity into a legitimate business in order to conceal its origins.

Illegal activity such as trafficking, drugs, smuggling, terrorism, tax evasion and fraud all use money laundering in order to create fresh money. There are three steps to money laundering; placement, layering and integration. These processes aim to make the original cash untraceable so that it is no longer associated with criminal activity.

Money laundering can be highly complex, involving the assistance of other people who may work within the legitimate business. In order to prevent money laundering occurring through your business a CPA can assist by closely scrutinizing the incomings and outgoings of company money making sure that everything is transparent and legal.

The CPA will be able to spot discrepancies if they occur to alert the owner of the business that questionable financial activity is occurring. As part of the Bank Secrecy Act, transactions that amount to $10,000 or more need to be reported. Suspicious activity reports are also required when there is a belief unusual or questionable financial activity has been committed. The CPA will help you to keep accurate records and alert you to anything that may be suspect.

A CPA is a Certified Public Accountant. The main role of a CPA is to scrutinies financial transactions, accurately record financial transactions, prepare tax returns and advise the client with regard to regulations and legislation. A CPA can advise a company on how to reduce costs and increase profit.

The Bureau of Labor Statistics reports that an accountant can earn in the region of $71,000 annually. CPA’s can work in a variety of settings from small private businesses to large corporate organizations. As stricter regulations and enforcements are set in place by the government the need for CPA’s is growing. It is expected that 190,700 new jobs will be created in this sector. To work as a CPA you will need to obtain a Bachelor’s degree in accounting and top this up with a master’s in CPA and gain a license.

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