Accounting For Dummies®, 4th Edition

16.7. Tap into Your CPA's Expertise

As you know, a CPA will perform an audit of your financial report (see Chapter 15). And the CPA will assist in preparing your income tax returns. In doing the audit, your CPA may find serious problems with your accounting methods and call these to your attention. Also, the CPA auditor will point out any serious deficiencies in your internal controls (see the next section). And, it goes without saying that your CPA can give you valuable income tax advice and guide you through the labyrinth of federal and state income tax laws and regulations.

You should also consider taking advantage of other services a CPA has to offer. A CPA can help you select, implement, and update a computer-based accounting system and can give expert advice on many accounting issues such as cost allocation methods. A CPA can do a critical analysis of the internal accounting reports to managers in your business and suggest improvements in these reports. A CPA has experience with a wide range of businesses and can recommend best practices for your business. If necessary, the CPA can serve as an expert witness on your behalf in lawsuits. A CPA may be accredited in the areas of business valuation and financial advising.

You have to be careful that the consulting services provided by your CPA do not conflict with the CPA's independence required for auditing your financial report. ...