Anyone who owns or manages business is probably painfully aware of the financial aspects of their business.
At any given time, they know that they must be responsible for taxes, bookkeeping, and other phases of a business that are turned over to an accountant for their handling.
Unfortunately, outside of taxes and bookkeeping, most people are unfamiliar with other aspects of an accountant’s work that can prove to be immensely beneficial to them.
Accountants, especially those who carry a Certified Public Accountant (CPA) certification, are highly qualified to provide advice on a wide range of business matters, including management and others.
Accounting Firms often have specialists working for them who counsel anyone who requests it. What follows is a list of only a few of the specialized services provided by these firms.
Preparation of Loan Documents
Whether a business is just starting or continuing operations, receiving a loan can be critical to remaining financially healthy.
When a businessperson applies for a loan, they are required to provide documentation of their financial health and their ability to repay that loan.
An accountant is uniquely qualified to present their client as eligible for a loan and to explain to representatives of a financial institution how their documents were prepared and that they were prepared according to generally accepted accounting principles.
In fact, this ability, commonly known as the attestation function, is one of the most important services of an accountant.
In this process, accountants can assist their clients in gathering the necessary data, from showing the current financial position to creditworthiness.
All of this is critical in improving the chances that a financial institution will look upon them favorably and approve their loan request.
Review of Documents and Contracts
It is important to remember that although a CPA is not an attorney, they are still well versed in the laws regarding the financial aspects of a business and related agreements.
This makes them able to provide sound advice on business matters that have or might have tax or other financial implications.
An accountant is in a unique position to review a document and advise their client on the financial consequences of one course of action over another.
In many cases, after a review of a report or statement, an accountant can help their client to avoid the negative consequences of adverse financial decisions while maximizing the positive benefits of another course of action.
With an accurate presentation of these conditions, a client is better positioned to make decisions on their business actions.
Help With Estate and Trust Planning
Both taxes and accounting information can have a significant impact on an estate. This makes it critical that business owners have good financial advice that will allow them to keep more of their hard-earned money instead of giving it to the government in the form of taxes.
With the assistance of a good accountant, a business owner can make sure the provisions they set down for the benefit of their children and grandchildren will suffer minimal tax ramifications. This will ensure that the lion’s share of their gifts for their families or other beneficiaries will get to the designated people.
A good counsel will allow business owners to implement strategies that will benefit both them and their businesses in the short and long run.