Businesses – whether they are nonprofit, public, or private – have plenty to take care of. There are the day-to-day duties of interacting with customers, as well as making the important decisions that drive the company’s mission and determine policies. Ultimately, though, every business or organization needs to keep track of its finances. That’s where CPA firms come in. Your local CPA firm in Rohnert Park, CA can perform all of the following duties and more:
An audit is one of the most frequently conducted processes done by a CPA firm, because it can be utilized by all three types of businesses – nonprofit, private, and public. An audit reviews the company’s financial records to determine two things: are the financial statements fairly presented? And do they meet the standards of generally accepted accounting principles? A nonprofit might request an audit because its by-laws require one, or it receives government funding that stipulates that an audit is necessary. A private business might need an audit to receive a private bank loan, or because it suspects that there might be fraud going on. And a public business needs an audit in order to comply with federal regulations, which require that its financial records must be accurate and on public display for its investors to see.
- Information technology
A CPA firm can help a business transfer its financial records from outdated technology to more up-to-date systems, and can organize this in a way that is easily accessible to the head of the company and others who have access. This can include setting up an inventory system, which is often needed as a business expands and finds that it has an enlarged inventory that is difficult to keep track of.
- Forensic accounting
Forensic accounting combines investigative procedures with accounting in order to determine if fraud or embezzlement is taking place, and its findings are used in legal proceedings if they occur. A forensic accountant will review the financial records of a company whether requested by the law or by the company itself.
“Consulting” is a very broad term that covers everything CPA firms do to advise businesses in areas from human resources to management. A CPA firm can create job descriptions for a company or devise a strategy for managing risk on a large scale.
- Financial planning
Areas such as savings and investments, future income and expenses, and loans and credit are managed by a CPA firm’s financial planning services. A CPA firm can even help individual clients plan for occasions such as a child’s college education or a business investment.