Pub. 1 2019 Issue 4

J U L Y / A U G U S T 2 0 1 9 22 nebraska cpas WE’RE GROWING. Apply Online Today Learn more about our culture and see current Audit and Tax CPA opportunities at: www.fzacpa.com/careers • Assist i ng wit h eva luat i ng mergers, acquisitions, reductions, spin-offs, moves, and leasing arrangements. • Interacting with external auditors to satisfy compliance needs. • Providing balance sheet services, such as cash management, receivables, and related issues. Other Advisory Services There are many service options available to promote beyond CFO services. Here are a few: Business entity selection – Choosing the form of entity of a business (such as S corporation, C corporation, sole proprietor, etc.) is a crucial decision that can have long-standing tax implications. Considering recent tax reform, reduction in the corporate tax rate, and a new 20 percent pass-through deduction, these services are needed now more than ever before. Business succession planning – Coordinating the transition of an owner’s business to his successors is critical. It can help ensure the continued success of a business once the owner decides to remove himself or herself from day- to-day operations. With a solid background in tax and other financial matters, CPAs providing this service can address the complex issues of business continuation and help the owner develop a strategically sound plan. Retirement plan and planning – When preparing a client’s tax return, a CPA can see how much the client is contributing to, and the value of, retirement assets. There is an opportunity here to determine if clients are financially able to retire and if they have enough assets to live in retirement. They may need guidance to navigate the myriad retirement plans a business may adopt. As a business grows, so may the complexity of the retirement plan needed for the company. The CPA is likely to be the first adviser to see the need for a different retirement plan opportunity. Estate planning – Effective estate planning facilitates the orderly transfer of assets to your client’s beneficiaries, provides security for the surviving spouse, and can reduce or eliminate the tax due on the transfer of a business and other assets. Assisting a business owner with the complex process of getting their financial affairs in order is critical. Financial planning – A properly structured financial plan enables clients to face any financial challenge that may present itself at each stage of their life. Helping clients assess their financial needs and develop strategies will enable them to achieve their goals and strengthen their financial security. Business valuations – Whether your client is selling a business or undergoing a difficult divorce, the amount attached to the value of the business is important. Providingausefulandobjectivevaluationof any business inwhich they have an interest might have important repercussions. Risk management – When working with a client on accounting and tax ser vices, the CPA can proactively initiate a review of both enterprise and personal risk management for business clients. The CPA can help identify the events that may affect their clients, both internally and externally, assisting in analyzing the risks and developing a set of actions to mitigate those risks. Independence & the Provision of Services CPAs t r ad it iona l ly have a deep understanding of their clients, so they are often the logical source to provide other advisory services. While providing tax services does not require the CPA to be independent with respect to the client, most attest services do require independence. Attest services are the audit, review, or compilation of the client’s financial statements. Audits and reviews require the CPA to be independent, not only in fact but also in appearance. That means another accountant looking at the facts and circumstances of the situation must be able to come to the same conclusion that the CPA providing the service is independent with respect to the client. A CPA can compile a financial statement when not independent, but must state his or her lack of independence in the report. What it means to be independent with respect to clients is detailed in the standards of the AICPA and Public