CPAs and LPAs can help new and growing businesses in three main areas: • Financial statement services • Tax planning and compliance • Financial planning and consulting Financial Statement Services Financial statements are a key way a business communicates its financial condition and results of operations. They typically include: • An accountant’s report • Balance sheet • Income statement • Cash flow statement • Notes to the financial statements Depending on the business’s needs and lender requirements, an accountant can provide different levels of service: • Audit . Provides a high level of assurance that the financial statements are fairly presented in accordance with an accepted accounting framework. • Review. Provides limited assurance, based mainly on inquiries and analytical procedures, that the accountant is not aware of material modifications needed. • Compilation . Presents financial information in statement form without providing assurance on its accuracy. Lenders often specify which level of assurance they require based on the size and risk of a loan. Tax‑related services Thoughtful tax planning can preserve cash for the business and help owners manage risk. Accountants can: • Advise on choice of entity (sole proprietorship, partnership, LLC, S corporation, C corporation) from a tax perspective • Help structure business formation, purchase, sale, or liquidation to minimize tax • Prepare tax returns for the business and its owners (income tax, payroll, sales and use tax, property tax, and related filings) • Assist with tax examinations, collections issues, and ongoing tax planning • Help with estate, succession, and personal tax planning for business owners • Assist in designing and implementing retirement plans, executive compensation, and employee benefits
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