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by Bryce Welker, founder of Crush The CPA Exam. A certified public accountant (CPA) will perform the audit. A CPA will affirm to the IRS that your company’s financial statements are truthful once he or she has audited bank statements and other documentation to eliminate any errors. Revenue Recognition.
But it’s an important consideration, especially for companies that plan to offer alternative compensation such as employee stockoptions, which will usually require a 409A valuation. A company can have value, even if there is no current income or revenue. Kaufman Rossin is one of the Top 100 CPA firms in the U.S.
For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage. The final straw came when I asked the latest 25-year old a simple ‘yes / no’ question related to stockoptions.
Make sure to put in place incentives (like a sale bonus or stockoptions program) today to avoid eleventh-hour power plays. If you have > $5 million in revenue, get the last two years of your financial statements audited. Establish key advisor relationships early.
I had a conversation with this CPA recently who’s probably in his late 50s and I’ve mentioned QuickBooks for example, he was talking about QuickBooks. It’s just raise them basically so that they can stand on their own and then watch them flourish. That’s my dream. Levi: That’s an interesting question.
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