Rocklin, CA Accountant for Small Businesses
Running a small business presents many challeneges, if you are having issues with taxes and accounting, our expert small business CPAs can help.
Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company.
Your stockholders, creditors, or private investors have different levels of risk tolerance, so we provide three levels of assurance to meet your needs.
Audit – Highest Level of Assurance
An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general practice.
Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.
An Audit allows you to…
- Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information.
- Facilitate the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations.
- Comply with banking covenants.
- Help deter and detect material fraud and error.
- Facilitate the purchase and sale of businesses.
Here’s what you get…
You get the highest level of assurance because we go outside your company to obtain more information. Typically, we’ll have written communication with:
- Your customers, to check outstanding receivable balances,
- Your banks, to confirm cash or debt balances and terms,
- Your vendors, to verify outstanding payable balances, and
- Your attorneys, for information on pending or threatened legal action.
We also perform physical inspections by observing your inventory counting methods and perform test counts. We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client’s supporting work papers.
Audits Not Just for Public Entities
All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies and other organizations receiving government grants.
Moreover, some financial institutions require audits of nonpublic companies based on the financing amount and/or the bank’s assessment of the company’s risk. Also, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits as checks of their management teams.
Review – Limited Assurance
Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company’s management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review doesn’t require us to study and evaluate your company’s internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: “We are not aware of any material modifications” for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.
Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA’s technical expertise without the work and expense of an audit.
Compilation – Lowest Level of Assurance
In compiling financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the statements. Compilations don’t require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
Which Report Should You Use?
Each type of financial statement report may suit specific circumstances, depending on requirements from your client’s bank or other parties, as well as meet budgetary needs.
Understanding each report’s unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.
Beginning a business is a task that requires a person to consider a wide range of factors. A potential business owner will have to think about the location for their business, their business structure, accounting methods, and resolve many other problems. However, it can be challenging to accomplish all of these issues alone, especially if you are not familiar with certain aspects of operating a business. If you require assistance with tax or accounting issues for your business, you should consult with an experienced Rocklin accountant for small businesses.
Whether you are a new business owner or have been operating your business for several years, there are many ways that an accountant can help you manage your business more efficiently. It can be difficult to stay abreast of changes with tax regulations and other accounting-related matters, and we are here to offer you the accounting services you deserve. You can also contact us online to schedule your consultation.
Accounting Services We Offer for Small Businesses in Rocklin, CA
The Cook CPA Group has worked on a number of tax and accounting issues for small businesses. We understand the many obstacles faced by small business owners, and we would like to work with you to handle any issues that may be affecting your business. Here are some of the following accounting matters that our firm can help you manage.
Selecting a Business Structure
Choosing a business structure for your small business is important as it can affect many aspects of your company. Determining your business structure means you will have to pick whether you do business as a sole proprietor, limited liability company, partnership, or another type of business structure.
One factor to consider when selecting a business structure is how a certain business structure will be taxed. For example, if you choose to operate your business as a corporation, you will have to endure double taxation. Alternatively, other business structures may allow you to have pass-through taxation where the taxes of the businesses can be included on your personal return.
The Cook CPA Group is here to listen to your unique goals to determine what type of business structure will work for you.
Strategic Business Planning
Strategic business planning is necessary when you wish to expand or enter into a new venture. For example, if you wish to introduce a new product to consumers, a solid business plan will help you address a number of factors, such as the costs of rolling out your new product. The Cook CPA Group can offer strategic business planning for the following:
- Purchasing a new business or location for your business
- Help with making a failing business more efficient
- Developing a financial plan to address a new venture
- Making targeted marketing plans to determine where you should be spending funds for promotional campaigns
This is not an exhaustive list. There are other aspects of business planning our firm can address for you.
A business owner might have to deal with a tax audit if they committed an error when filing their taxes. There are a number of issues that may trigger a tax audit of a business. One of the most common reasons for a tax audit is inconsistencies when calculating payroll taxes.
If an employer does not withhold the proper taxes from an employee’s paycheck, the parties responsible for payroll taxes could be held responsible for the unpaid payroll taxes.
If you received notice of a tax audit, you should not panic. In many cases, a tax audit can be resolved by submitting the proper documentation to the auditing agency. Our firm can help you resolve a tax audit.
Unpaid Tax Returns
If you have failed to file tax returns for your business, this could cause a variety of problems. If business taxes are not paid, the IRS has the power to place a lien on items owned by the business. At this point, a business owner should make an effort to pay off the outstanding tax bill as it could affect their business relationships and the ability to secure a loan.
If a business owner does not pay their tax bill after a lien has been issued on their property, the IRS may levy all property that has a lien. To avoid this scenario, it is important to work with an experienced accountant.
The Cook CPA Group offers a number of other accounting services that are not discussed above. Operating a small business is a rewarding yet time-consuming, and our team of Roseville accountants is here to help you manage your accounting issues.
Work with Our Experienced Rocklin Accountant for Small Businesses
If you need accounting assistance for your small business in Rocklin, California, do not hesitate to work with an experienced Rocklin accountant for small businesses. Our team of accountants has a wealth of experience handling tax and accounting problems for small businesses, and we would be pleased to work with you. Let us handle your small business accounting issues so you could focus on operating your business.