Question

Discuss why a non-public corporation would spend money to have a CPA firm audit its financial statements?

Answer 1

Accounting services offered by CPA firms are designed to offer flexible bookkeeping solutions to businesses and institutions of every size. Whether one is a start-up or an established company, a non-profit or a for-profit, for growing the business or sustaining the success of the organization, business owners must make sure that they have a strong, reliable finance function in place. The key benefits for a non-public corporation to hire a CPA firm is as follows:

• Full Array of Accounting Services: Hiring a CPA Firm gives one access to a full team of accountants and professionals that have the requisite knowledge and overall experience to handle multiple aspects of the company's accounting and auditing issues.
• Saves Money and Time in the long run: Hiring a CPA Firm allows the owner to focus on the actual business issues by taking all accounting issues off one's hands. If the owner is relieved of the day-to-day oversight of the company's finances, the available time increases to tackle other business issues. The cost involved in higher a CPA firm may quickly be outweighed by the long term benefits it generates in terms of the expertise and efficiency it brings to the table.

• Changing tax and accounting laws: A certified accountant knows what’s new in the market, and can help the company get the latest tax benefits, along with the latest accounting requirements to be incorporated in the financial statements. This in turn helps get positive credit ratings, leading to a greater chance to borrow at favorable rates.