Starting or growing a business is a formidable task for an entrepreneur.

There are many benefits to using the services of a knowledgeable and experienced CPA. Today's CPA does far more than taxes and audits. A CPA is a personal financial planner, a management consultant, a management information specialist, a business consultant, and more. By using A CPA a business owners get definite tangible benefits, e.g., savings in taxes, reduced operating costs, solutions to personnel problems, advice on retirement plans, and even help with marketing.

And, they also get the intangible benefit of having a knowledgeable CPA involved with their business and investments over a long period of time.

Perhaps one of the most beneficial services that a CPA can provide for someone concerned about their finances and taxes and about the management and accounting for their business is simply talking things over. It is satisfying to know that someone else, who is discreet and knowledgeable, knows what is going on in your business life. We have develop long-standing relationships with our clients that have found that it is very useful to discuss the organization of their operations and their financial and management concerns with us.

Finally, Certified Public Accountants are licensed and regulated by the State of Florida Department of Business and Professional Regulation. Accountants are not.

CPA Services – A Guide To Understanding & Using CPA Services

The following information is to help you determine if you require the services of a Certified Public Accountant. Take a look at the headings below and click on the appropriate topic to learn more information about how a CPA can help you.

^{CPA as Advisor to Small Businesses}

^{CPA as Auditor}

^{CPA as a Tax Advisor}

^{CPA as Estate Planner}

^{CPA as Personal Financial Planner}

^{CPA as Advisor to Small Business                     Back to Top}

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^{More than 300 new small businesses open their doors every business day in the United States. Their ability to survive depends, in large part, on their ability to plan for the future, while meeting the present challenges of today's ever-changing business environment. Certified public accountants (CPAs) are the premier providers of business advice and technical assistance to small businesses.}

^{CPAs are professionals, distinguished from other accountants by stringent licensing requirements. They must have a college degree or its equivalent, pass a rigorous national examination, and meet certain experience requirements to qualify for a state license. Once licensed, CPAs are governed by a strict code of professional ethics.}

^{CPAs' technical knowledge, training, and business experience enable them to help small business owners find solutions to their day-to-day problems. For example, CPAs provide accounting and financial services on an ongoing basis, review and make recommendations to improve internal accounting and administrative controls, help businesses secure loans, and prepare cash flow projections that show how the loans will be repaid. CPAs also provide advice to business owners on problems unique to the industries in which their businesses operate and help them make informed decisions, such as creating succession plans to effect a smooth transition to a new owner.}

^{By providing accounting and auditing services, tax services, management consulting services, and financial planning services, CPAs help small businesses prosper and face their competition with confidence.}

^{Accounting and Auditing Services}

 ^{CPAs can assist small business owners by providing the following services in connection with financial statements:}

^{• Performing an audit, a review or a compilation of financial statements}

^{• Performing an agreed-upon procedure engagement with respect to specified elements, accounts, or items of a financial statement}

^{• Performing attestation services in conjunction with a forecast or projection}

^{• Developing formats for regular monthly or quarterly reporting}

^{• Analyzing operating results}

^{• Advising clients about the selection or use of computer software to generate financial statements}

^{• Consulting services}

^{Depending on the needs of the small business owner, CPAs can provide consulting services in:}

^{• Cash management}

^{• Risk management (insurance)}

^{• Financing}

^{• Environmental compliance}

^{• Business valuation}

^{• Compensation and benefit plans}

^{• Computer-based accounting systems}

^{• Succession planning for family-owned businesses}

^{• Mergers and acquisitions}

^{• Health care}

^{• Compliance with government regulations}

^{• Litigation support}

^{• Total Quality Management}

^{• Feasibility studies}

^{• Software evaluation and design}

^{• Disaster recovery planning}

^{• Organizational restructuring}

^{• Human resources planning}

^{In addition, CPAs help small business owners monitor and reduce production costs, control inventory, and develop marketing and pricing strategies. They also provide financial analyses, including evaluation of economic projections and long-range planning objectives.}

^{Tax Services}

^{Ever since the first federal law on income taxes was passed in 1913, CPAs have been extensively involved in tax matters. CPAs keep abreast of changes in the increasingly complex tax system and can provide expert tax advice.}

^{CPAs help small business owners with tax compliance, keep them aware of tax law changes, and help them choose among the available options and provisions. They prepare business income tax returns, as well as sales, payroll, and franchise tax returns. CPAs also represent their small business clients before the IRS, if necessary.}

^{Since most business decisions have tax ramifications, CPAs play an equally important role as tax planners. In this capacity, CPAs advise small business owners on the tax implications of proposed transactions and provide assistance in overall planning. CPAs help small business owners understand how transfers of ownership, changes in inventory procedures, acquisitions and mergers, and other transactions can affect their taxes. They also can answer day-to-day questions about depreciation, contributions, installment sales, and other specific tax problems.}

^{CPAs provide advice on the tax effects of various types of business organizations, including sole proprietorships, partnerships, corporations, and limited-liability companies.}

^{Personal Financial Planning}

^{As personal financial planning advisors, CPAs help small business owners make the right financial planning decisions by analyzing their overall financial and tax situations; helping them devise estate plans and plans for retirement; and assisting them in risk management, insurance planning, and developing an investment philosophy, among other things.}

^{Adding Value to the Small Business}

^{CPAs make small businesses their business. They approach each set of business, tax, and financial problems with objectivity. They work with small business owners to find solutions to these problems and to ensure that companies are meeting their objectives. CPAs are prepared to help the client recognize and deal with a variety of business situations.}

^{Whether small businesses are just getting off the ground or have been established for some time, CPAs can help put and keep them on the track to profitability.}

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^{Independent auditing of financial statements is one of the best known services that certified public accountants provide; however, it is also the least understood.}

^{Over 47 million investors own shares in more than 14,600 publicly held U.S. companies. Such companies are required to issue financial statements. CPAs are engaged to add credibility to management's financial representations by giving assurance that the financial statements conform to generally accepted accounting principles. The concept of the independent audit has been a key element in the growing number of shareholders willing to invest in the future of this nation's businesses.}

^{CPAs have acquired the expertise to give a professional opinion on the overall fairness of a company's financial statements from having met the following requirements: obtained at least a college degree or its equivalent; passed a rigorous two-and-a-half day national examination; and obtained specific experience to qualify for the CPA certificate and a state license. CPAs are further guided by the accounting profession's basic tenets of independence, objectivity, and integrity.}

^{Before investors or other interested parties can determine how much they are able to rely on the auditor's report, they must first gain a general understanding of what an audit is and what it is not.}

^{What An Audit Is Not}

^{The financial information upon which the audit is based is prepared not by the auditor, but by management.}

^{An auditor does not express a judgment on the competence of management, advise on the desirability of investing in or lending to a company, nor assure that employees are honest and competent.}

^{The CPA uses sophisticated testing techniques and professional judgment, within the parameters of established standards, to reach an informed opinion on the overall fairness of the financial statements in accordance with generally accepted accounting principles.}

^{Although the purpose of an audit is not to uncover all fraud, the auditor is required to design the audit to provide reasonable assurance that material errors or irregularities that exist in the financial statements are detected.}

^{Characteristics of an Audit} 

^{It is virtually impossible for a CPA to examine all transactions recorded in financial statements. The auditor bases his or her opinion on selective testing using sampling techniques. Audits provide an economical and reasonable level of assurance that the financial statements are free of material misstatements, rather than a guarantee of absolute accuracy.}

^{Before forming an opinion, the auditor must consider the company's internal control structure, which is divided into the control environment, accounting system, and control procedures. The auditor uses this knowledge to identify the risk of misstatement in the financial statements and then designs procedures to reduce that risk.}

^{The auditor also is required to use analytical procedures, which are evaluations of financial information, in the planning and final review stages of all audits.}

^{In addition, the auditor is obligated to consider whether the overall audit results raise substantial doubt about the company's ability to stay in business. If there is doubt that the company can continue as a "going concern", an explanatory paragraph must be included in the audit report.}

^{The Auditor's Standard Report}

^{When an audit is completed, the auditor issues a report that states the CPA's responsibility, the nature of the work performed, and the conclusions reached.}

^{The auditor's standard report consists of three paragraphs: an introductory paragraph, a scope paragraph, and an opinion paragraph. The introductory paragraph differentiates management's responsibilities for the financial statements from the auditor's responsibility to express an opinion on them.}

^{The scope paragraph explicitly states that the audit was planned and performed to obtain reasonable assurance about whether the financial statements are free of material errors or irregularities. It also provides a brief description of what is involved in an audit and states that the auditor formed an opinion on the financial statements taken as a whole.}

^{The third or opinion paragraph presents the auditor's conclusions.}

^{Recent Professional Developments}

^{Quality control is a vital part of a CPA's practice in that it helps ensure that appropriate standards are followed. In 1988, AICPA members voted to require regular independent reviews of their accounting and auditing practices.}

^{In April 1988, the AICPA Auditing Standards Board responded to the public's concerns and misperceptions about what an audit is and what auditors do by issuing nine new statements on auditing standards. These standards, most of which are effective for audits of financial statements periods beginning on or after January 1, 1989, are designed to improve auditor performance and auditor communications.}

^{One of the new standards revised the auditor's standard report so that it gives clearer descriptions of the auditor's responsibility, the work the auditor does, and the assurance the auditor provides. This is the most substantial change in the auditor's standard report in forty years.}

^{Other new standards cover the detection of fraud and illegal acts, more effective audits, and improved internal communications.}

^{In Summary}

^{The auditor's report is intended to communicate the auditor's responsibility and conclusions reached. The report is set forth in standardized wording that has a specific meaning. At times, because of particular circumstances, the auditor may modify the report. In such cases, the reasons for any modification are noted. When CPAs affix their names to these reports, their opinions are not to be treated lightly. Their professional integrity and reputation are at stake.}

^{The Purpose of an Audit}

^{The primary objective of an audit is to provide reasonable assurance that the financial statements prepared by management are fairly presented in conformity with generally accepted accounting principles and do not contain material misstatements. These include errors-unintentional misstatements or omissions in financial statements-and irregularities-intentional misstatements or omissions. (Misstatements are considered material if they are significant enough to make a difference in the decisions of a reasonable financial statement user.)}

^{This assurance, in the form of the CPA's opinion, is obtained by testing the data underlying financial position, results of operations, and cash flows. To do this, the CPA is guided by statements on auditing standards issued by the Auditing Standards Board of the American Institute of CPAs (AICPA). Also, subjective professional judgment is involved.}

^{The auditor then forms one of the following types of professional opinions:}

^{• Unqualified (no significant limitations affected audit performance and no material deficiencies exist in the financial statements)}

^{• Qualified (the scope of the auditor's work is significantly restricted, or there is a material departure from generally accepted accounting principles)}

^{• Disclaimer (restrictions in the audit's scope are so pervasive that the auditor cannot form an opinion on the fairness of the presentation)}

^{• Adverse (departures from generally accepted accounting principles are so significant that the financial statements do not fairly present the company's financial position)}

^{The basic point to remember is that an opinion is just that-an opinion indicating that a professional judgment, not a guarantee, has been given on management's financial statements. Any user must carefully review such financial statements and all related footnotes, in addition to the auditor's report.}

^{CPA as a Tax Advisor                               Back to Top}

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^{The United States tax system is complex and in a state of continuous change. The use of taxes as an instrument of economic and social policy and the competing objectives of various interest groups have led to frequent legislative changes in the tax laws.}

^{Certified public accountants (CPAs) advise both individuals and businesses on all aspects of compliance with the tax laws. CPAs are bound by a stringent code of professional ethics and are qualified through their education and experience to provide a wide range of tax services relating to personal and business decisions. They prepare tax returns and related schedules, provide advice on tax issues, help individuals and businesses plan effective tax strategies, and represent taxpayers before taxing authorities.}

^{CPAs' knowledge and training in tax matters and their awareness of new developments and emerging issues enable them to develop effective tax-planning techniques that often result in substantial tax savings. Similarly, they use their experience in tax return preparation to explore the many facets of personal finance or running a business. As tax advisors, CPAs can provide the following services:}

^{• Tax consulting}

^{• Personal tax planning}

^{• Business tax advice}

^{• Representation before tax authorities}

^{• Other tax services}

^{• Tax consulting}

^{Today's CPAs are problem solvers. They can:}

^{• Advise on the tax effects of transfers of ownership among family members in a business.}

^{• Provide income and estate tax counseling with respect to the financial settlements involved in separation and divorce.}

^{• Design compensation, fringe benefit, and retirement plans for a company.}

^{• Plan for a change in a corporation's accounting methods.}

^{• Obtain an advance ruling from the IRS on the tax consequences of a proposed corporate acquisition of the stock or assets of another company.}

^{• Analyze the tax aspects of investment opportunities.}

^{• Personal tax planning}

^{As financial planning experts, CPAs can also develop strategies to meet the long-term needs of yourself and your family.}

^{CPAs' expertise and in-depth understanding of complex tax rules and regulations can help individuals and families improve their tax position and realize significant tax savings.}

^{CPAs have the knowledge to assist in developing an appropriate estate plan for building and preserving assets while minimizing estate and inheritance taxes.}

^{Business Tax Advice}

^{There are tax implications to most business decisions, such as relocation or changes in inventory procedures. Before making such decisions, consult a CPA who can give advice on the tax effects they may have on various types of business organizations - such as a sole proprietorship, a partnership, or a corporation.}

^{They offer sound tax and accounting advice in connection with the organization, purchase, sale, or merger of a business. CPAs advise business owners on establishing pension and profit-sharing plans and preparing all types of tax reports for such plans.}

^{Representation Before Tax Authorities}

^{A CPA can act as a client's representative before state and federal tax authorities. A CPA might serve as a personal representative, or reply to correspondence concerning tax returns or provide explanations, schedules, and other documents in tax examinations.}

^{CPAs get involved in specific activities such as the following:}

^{• Challenging the IRS position regarding issues on which there are conflicting points of view}

^{• Preparing a protest that cites reasonable cause to abate a penalty assessed to an individual for the late filing of a tax return}

^{• Presenting oral and written arguments before an IRS appeals conference}

^{• Other tax services}

^{The CPA is an important part of your professional advisory team and a CPA's advice is essential for special projects. For example, a tax consulting engagement for a commercial real estate venture will involve the CPA in consultations with the developers, syndicator, investment bankers, architects, construction engineers, and attorneys.}

^{In a pension and profit-sharing plan engagement, the CPA will work with actuaries, attorneys, insurance company representatives, trustees of the plan, and investment counselors.}

^{Whether you're concerned about your personal tax return, looking at your company's finances, or assessing your financial goals, CPAs are the professionals trained to give you sound advice.}

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^{Certified public accountants (CPAs) act as advisors to individuals, businesses, financial institutions, nonprofit organizations and government agencies. They are distinguished from other accountants by stringent educational, experience and licensing requirements.}

^{Estate and financial planning can best be done by a team of professionals who work together. A CPA is a key player on the estate planning team, along with a lawyer, a bank trust officer, an insurance agent and an investment advisor. CPAs have knowledge of the tax implications of decisions you make in structuring your estate. They can help assure that you meet your estate planning goals of minimizing the taxes and maximizing the portion of your estate that passes to your heirs.}

^{Preserving Financial Security}

^{Today's unstable dollar and widely fluctuating markets have made accumulating, preserving and disposing of wealth more difficult than ever before.}

^{Sound financial and estate planning can help preserve the financial security that you are working so hard to achieve. It's important to plan for the disposition of property during your lifetime and upon your death. With effective planning, you can minimize the tax burden on your estate and know that your beneficiaries will receive everything that the law allows.}

^{The importance of estate planning}

^{An essential part of lifetime planning is making sure that only appropriate assets pass to the survivors. Certain businesses and investments may be impractical or impossible for a grieving family to manage. A CPA can assist you in putting your affairs in order in the most effective way to provide for loved ones and friends.}

^{Effective financial planning is essential. An estate you consider of modest value today may well become very sizable when measured in inflated market values at the time of your death.}

^{Tax Considerations}

^{CPAs can assist you with many of the facets of your estate plan. Consider the following:}

^{• Do you know that if you die without a will, disposition of your property in accordance with state law might not be what you desire?}

^{• Does your plan reflect your current marital status?}

^{• Has proper use been made of joint ownership of property?}

^{• Have you considered the income and gift-tax consequences of setting up, transferring or selling joint interests?}

^{• Have trusts been used to your advantage?}

^{• Have beneficiaries and ownership of life insurance policies been properly designated?}

^{• Does your estate plan provide for enough liquid assets in your estate to pay estate taxes?}

^{• Does your estate plan take state taxes into consideration?}

^{Gift Giving}

^{Estate and gift taxes are imposed on the current value of property. You can save taxes by making a current gift of some of your property if the property given is likely to appreciate substantially in the future. If you have a number of beneficiaries in mind, a gift-giving program using the annual gift-tax exclusion can help minimize taxes on a substantial portion of your estate.}

^{Other Services}

^{The CPA's role in estate planning does not necessarily end at the client's death. There are the deceased person's final income tax return, the estate tax return and the income tax return of the estate to prepare. CPAs may be involved in the estate valuation process and work with the executor and attorney on the many opportunities for tax savings following the date of death. Again, the goal is to maximize the portion of your estate that passes on to your heirs.}

^{CPAs also may become involved in IRS audits and in the administration and tax planning of the estate.}

^{The Estate Planning Team}

^{Estate and financial planning require specialized knowledge in many areas. Because of the CPA's close relationship with clients in personal financial affairs and in personal income taxes, a CPA can make a vital contribution to the overall direction and coordination of the entire financial and estate planning team.}

^{That team of professionals can develop a strategy to conserve, increase and, ultimately, pass on your estate with maximum tax savings. Start the team effort by contacting a CPA.}

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^{Most people know they can turn to a certified public accountant (CPA) to complete their tax forms, to audit their businesses if they need bank loans, or to explain the tax implications of trusts and estates. In addition, as personal financial planners, CPAs can help you make an investment in your future.}

^{Personal financial planning is important to individuals at all income levels. Faced with complicated and ever-changing tax laws, rising and falling inflation rates and an explosion of investment opportunities, many individuals are finding that the expertise of a CPA can help them make the most of their money.}

^{CPAs can guide you through the maze of investment opportunities - certificates of deposit, mutual funds, bonds, real estate and many others. They can forecast the tax consequences of each kind of investment, working to help you meet your personal financial goals. Even if you have a small nest egg, a CPA can help you preserve it and make it grow, despite taxes and inflation.}

^{Many forces at work in the American economy affect your savings, working capital and investments. Without financial planning, you could miss opportunities to make your money grow or see your investment income slashed by unnecessary taxes.}

^{Your CPA can help you answer the four basic questions you'll need to answer to begin the personal financial planning process.}

^{• Where do you stand now?}

^{• Where do you want to go?}

^{• How are you going to get there?}

^{• How can CPAs help?}

^{CPAs will analyze your total financial and tax position and help you identify financial objectives. They can take into account all of the components of your financial picture with a goal of targeting ways to help you make your assets, savings and investments grow at a rate that outpaces inflation.}

^{CPAs may help you improve your financial decisions by explaining financial and investment strategies. They can provide an objective review of the investment recommendations of other advisers and counsel you about the risk, liquidity, tax and management characteristics of the investments. They can also advise you about the use of credit, dollar-cost averaging, diversification, employee benefit plans and other financial management strategies.}

^{By professionally assessing your financial goals, assets, liabilities and income, CPAs can help you plan for your retirement. They can:}

^{• Suggest levels of contributions to Individual Retirement Accounts (IRAs) and Keogh plans.}

^{• Evaluate your pension plan and project benefits at likely retirement ages.}

^{• Show you how your employee benefit plan might be the biggest source of your retirement income.}

^{• Evaluate the adequacy of your life insurance in meeting your personal goals for your family.}

^{• Determine the future income needs of your family with inflation-adjusted projections.}

^{CPAs are qualified to help you design your estate plan. They can outline the options available in apportioning the wealth you've accumulated over your lifetime. With careful planning, your CPA can help you choose the most advantageous alternatives.}

^{Do I Need Personal Financial Planning?}

^{Personal financial planning is as important to individuals with modest incomes as it is to wealthy individuals who may have complicated tax situations. Just a few of the many possibilities that signal the need for financial planning are:}

^{• You want to plan for your children's education.}

^{• You are concerned about your retirement income.}

^{• You are anticipating an inheritance.}

^{• You own a business.}

^{• Your credit card debt is excessive.}

^{• Your family income is dependent on one wage earner.}

^{• You have property in more than one state.}

^{CPAs can help you determine the amount of money you will need to pay for one or more specific financial goals, create an estate or maintain your desired lifestyle. They are on top of changes in the tax laws and can work with you to maximize your net worth, while providing for contingencies.}

^{What Information Will the CPA Need?}

^{You should do some homework. Be ready to provide:}

^{• Complete family data.}

^{• Copies of federal and state tax returns from the previous three years.}

^{• Copies of wills, trust agreements, divorce settlements, and buy-sell agreements.}

^{• Lists of assets, including savings and checking accounts, stocks, bonds, 401(k) plans, etc.}

^{• Data on real estate owned.}

^{• Records of personal debts, loans, mortgages, etc.}

^{• Copies of employment contracts, including retirement benefits, profit sharing and life/disability insurance plans.}

^{• Copies of insurance policies, including life, auto and homeowners. Data on personal property of value.}

<sup>When you need sound financial advice, consult a CPA. Together, you can map a course for a more secure and profitable financial future.

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