The Big Check – A CPA’s Advice to High-Tech Entrepreneurs

From Jamie Dunn, CPA and partner with Hodges, Jones & Mabry, P.C.:

Don’t let this happen to you…

You sacrifice vast amounts of time, energy and financial resources to start and grow a successful company.  After years of hard work, you are approached by someone who is ready to write you a big check.  This someone asks you to provide the company’s last several years’ financial statements.  All you can provide, however, is a series of internally-produced financial statements that have some unusual accounts and/or balances because that was the easiest way for you to record and monitor certain aspects of your company. 

To you, your notations make perfect sense.  To an outsider, they call into question the integrity and accuracy of your company’s financial performance and records.

For many entrepreneurs, the last thing they want to think about is accounting and daunting-sounding terms like audit, review and compilation.  Yet, when the opportunity comes for the big check, you want to have your financial credentials in order.

It is important for entrepreneurs to consider having an independent accounting firm provide assurance–an independent, professional opinion–on financial statements, whether through doing an audit, reviewing a report, or simply compiling your financial records into a standard financial statement format presentation. 

It is a lot easier to resolve accounting questions and problems along the way rather than spend lots of time and effort several years down the road to produce accurate statements in a consistent format with some level of independent assurance. 

In addition to helping prepare them to receive "the big check," many entrepreneurs find CPAs a valuable resource in providing suggestions and insights from a financial expert’s perspective.

Hodges, Jones & Mabry, P.C. has been an accounting partner to businesses and individuals for over 20 years.  It is a corporate sponsor of Concept Camp, a program of business accelerator VT KnowledgeWorks, located in the Virginia Tech Corporate Research Center in Blacksburg, Virginia.

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