Accounting News and Notes

Duluth/Gwinnett CPA: Determining if You Truly Need an Audit for Your Company’s Internal Financials

Yes you can get a CPA Audit done on your company. However an audit is approximately four to five times more expense than a compilation. Frequently a banker or outside investor can be satisfied without having to go through the full expense of an audit. Knowing when to use which and the nuances thereof will do much to help ensure that you do not incur unnecessary business expenditures.

There are three levels of attestation services a CPA may provide when evaluating your business’s internal financial statements. An informed understanding of each of the three substantially varying levels of service an outside CPA may provide will assist you in knowing which is best suited to your particular needs. Several examples of the varying degrees of need will be noted in each of the levels described.

Seeking out the reporting standard that meets the needs of management, investors, bankers, owner, the SEC, and other regulatory governing agencies. Although there is some discretion in the specific application of rules, guidelines, FASB’s (Financial Accounting Standards Board) pronouncement and other governing rulings, much of what a CPA is required to do for the varying levels of service are indeed mandated by the AICPA (American Institute of CPA’s).

Standardization of procedures and reporting is largely intended to give the public at large standards by which CPA’s are to govern their personal as well as professional ethics and standards in both the completion of attestation services and their reporting.

Audits

Audit reports are the highest level of independent CPA services available. As such, there are more FASB’s and SAS’s (Statements on Auditing Standards) written about audits than any of the other levels of service available. Some of the procedures required by an outside CPA in an audit environment include confirmation of bank balances, review and verification of bank reconciliation, a search for deposits in transit, a search for any unrecorded outstanding checks, confirmation with the bank of any offsetting balance requirements, lines of credit, security, debt covenants and their compliance, verification of recording of checks, receipts and an assessment of internal control. The successful completion will require verifying all substantive balance sheet and profit and loss items, obtaining a letter of representation from the client’s attorney, being present and performing substantive verification procedures of inventory, notes payable, Board of Directors minutes and much, much more.

The purpose of an audit is to independently verify by sight, confirmation, discussion with management, assessment of internal controls and analytical procedures, that a company’s financial reports are substantively correct. Audited financial statements will also include a statement of changes in financial and detailed and referenced footnotes detailing the companies accounting methods, policies, and certain financial data. Again, both the statement of cash flows and the attached footnotes and the procedures and reporting thereon are governed by the AICPA, SAS’s, and other governing and regulatory agencies.

Audits, by nature of the work performed, as well as the reporting standards required, are substantially more expensive than any of the other levels of service available. Publicly traded/SEC companies are examples of companies required to have an annual audit. It would be prudent also to consider having an annual audit performed when someone other than the owner performs key areas of control and exposure.

Reviews

A review consist predominantly of an assessment of the company’s books and records by the performance of analytical tests, certain analytical procedures (such as the comparison to prior books and records), and calculation of certain financial tests and ratios. There procedures, by their very nature are intended to give reasonable assurance to an outside reviewer, rather than the detailed verification and reporting requirements required by an audit. Reviews are frequently requested by banks or insurance companies issuing performance bonds who want a higher degree of service/verification than a compilation, which is discussed next, but not the full extent and cost of an audit. Reviews typically also include a statement of changes in financial position as well as detailed footnotes.

Compilations

A Compilation is the lowest level of attestation services a CPA may provide. Essentially, a compilation is when a CPA simply compiles the books and records of a client without the performance of any substantive procedures, independent verification or confirmation of any of a clients balance. Thus, a compilation is solely the representation of a company’s management as no verification or procedures of account balances on the balance sheet or the profit and loss statement are required. Also, management has the option to also exclude from compiled statements the statement of changes in financial positions and all related footnotes.

At HIS CPA, P.C. we strive to be an integral part of your management team. By keeping you better informed of your options and tax laws that affect you and your business, we remain poised to assist you as you work to successfully manage your business. Having served as a CPA in Atlanta for decades I have learned that collecting all of the information available is essential to prudent decision making.

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Dunwoody, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

Duluth/Gwinnett CPA: What People Say about His CPA PC…A Christian CPA Firm

“I also like your enthusiasm and passion.  You consistently inspire me to be a better Christian.”  — Fellow Committe Member at Church

Choose today to whom you will serve. But for me and my house we will serve the Lord!!!!

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Roswell,  Sandy Springs and Tucker as an Award Winning CPA.

So You Think You Know The Bible?

Bible Trivia Question: Name the one disciple of Jesus who was saved for Himself.

Bible Trivia Answer: Just like you no disciple was saved for himself.

We are all saved to disciple others.

Where you are in the process of starting a Bible Study Group, in addition to ours, that you lead at your work, school, neighborhood or gym.

God gave us the Great Commission of telling others the good news of Jesus Christ.

We are all called to submit to authority and “we are all going to submit to something whether we want to or not.”

If he are not submitting to His authority we are submitting to Satan’s.

Choose today to whom you will serve.

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Roswell,  Sandy Springs and Tucker as an Award Winning CPA.

What Will You Be Doing if God Called Today?

Will you be busy doing His work or that of the world?

Will you be found taking care of God’s business or that of the world?

Will you be found praying for the lost the last and the least or enjoying what the world has to offer?

Will you be found basking in the Fruits of the Spirit or will you be enjoying the fruits of the world?

I am reminded of an old axiom that I have always remembered.

There was a gentlemen who went to the doctor to have important tests done. 

When the doctor finally called he said “I have good news and I have bad news. Which would you like first?”

The man replied I guess “I would like the good news first.” 

To which the doctor replied “You are going to die tomorrow.” 

The man in utter shock exclaimed “If that is the good news then what possibly could be the bad news?” 

The doctor deadpanned “I should have called yesterday.” 

This world will soon end. There are those in your life that only you can reach.

What Will You Be Doing if God Called Today?

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Roswell,  Sandy Springs and Tucker as an Award Winning CPA.

Duluth/Gwinnett CPA: Seeking Financial Success for Gwinnett Entrepreneurs

Atlanta CPA Teaches Business Clients Tax Law While Focusing on Operating Results

Duluth Income Tax Preparation

When a CPA does a tax return they are best suited to give useful financial advice that an owner can use to turn information into profits. Just as a doctor will give invaluable insight to their patient, a CPA should be a clients closest financial confidant. Below is a sample letter that might be sent to a client to assist both in ensuring future business profitability and adequate tax documentation for a corporate/business client:

Regarding Your Corporate Returns

-Your cost of goods sold (cost of doing business) is 90% leaving only 10% to cover salaries and other expenses creating a book and tax loss of $100,000. I suggest ASAP that we review our pricing guidelines and adjust so that margins are at least 30%. This would allow for you operating expenses to remain the same and break-even. To ensure profitability, given present expense levels, I would suggest your strive for a gross profit margin of 35%. Please be reminded that the K-1 losses that are not currently deductible due to basis limitations are called suspended losses and are rolled forward until you have sufficient tax basis.

-Tax law allows S Corporation owners to deduct tax losses only to the extent or your tax basis (which is calculated predominantly by prior retained earnings and current loans made to the company). Therefore only approximately $15,000 of your $100,000 of tax losses are deductible.

-Tax law requires all S Corporation owners to take a fair and reasonable salary given position and profit. Based upon your operating results you might consider lowering your salary until profitable levels are maintained, while being sure to maintain the reasonableness statutes required by the IRS.

Regarding Your Personal Returns

-Please get to me a copy of the year-end statements showing total mortgage interest, cash contributions to charity and real estate taxes.

-Please get to me the property taxes paid on your personal vehicles.

-Please get to me the original purchase price and date of your rental property.

-Please turn in an expense report to get reimbursed for your medical premiums

-I did not see Association fees on your rental property.

Bookkeeping for a Small Business
Learn the ABC’s of accounting for the business and financial operations of your business. Visit http://www.hiscpa.com/keeping-books.html

Preparing and Reviewing Financial Statements
Financial results of your business are like a doctors chart of their patient, this will help enable you to understand financials and their use. See http://www.hiscpa.com/financial-statements.html

Monitoring Your Books at the End of the Month
Month-end control procedures are critical, as any variance to these will negatively impact the reliability of your internal financial. These are just a few of the tips we give clients each and every day. http://www.hiscpa.com/monthend.html

Contact HIS CPA PC (A Christian CPA Firm) today.

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for American Entrepreneurs.

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Roswell,  Sandy Springs and Tucker as an Award Winning CPA.

If people worked as hard at making what they have work…

They wouldn’t have to start all over!

Staying True to Self is First Staying True to God.

Seek His Will First and Only!!!!

Psalm 27:1    Unless the Lord Builds the House they Labor in Vain

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Dunwoody, Alpharetta,  Sandy Springs and Tucker as a Faith Based CPA Firm

100 Ways We Deny Christ

As watered down Believers we are led by Satan to believe that the only time we deny Christ is when a gun is pointed at our head and we are asked “Are you a Christian?” But nothing could be further from the truth for we deny Christ many more times that we might ever believe.

100 Ways We Deny Christ

1. We fail to regularly read our Bible
2. We do not accept Him as our Lord & Savior.
3. We do not live like we accepted Him as our Lord & Savior.
4. We have a job and do not start a weekly Bible study at our office.
5. We don’t invite our neighbors to church.
6. We don’t serve at church.
7. We don’t pray for others.
8. Jesus was not a mime. We think the way we live is enough.
9. We are a chameleon Christian bending this way and that.
10. We believe there are shades of gray in our faith walk.
11. We believe some Bible stories to be “just stories.”
12. We look to hang out with the “in crowd.”
13. We don’t study God’s word.
14. We believe science’s story of evolution.
15. We see a sunset and fail to know the truth.
16. We seek our own way.
17. We follow those who are not following Him.
18. We don’t stand strong even when others fall away.
19. We walk by someone in need.
20. We fail to stop to help a stranded driver.
21. We fail to serve the poor.
22. We fail to bind up the broken hearted.
23. We fail to ask when someone is hurting.
24. We ask how someone is doing, when all we really want is to be on our way.
25. We believe we did something ourselves.
26. We fail to give all the glory to God.
27. We fail to consider others better than ourselves.
28. We fail to tithe.
29. We fail to go the extra mile for others.
30. We fail to see the world through others eyes.
31. We fail to act when God tells us to.
32. We fail to speak when we know our words will make a difference.
33. We fail to try to lead others to Christ.
34. We fail to disciple others.
35. We fail to seek to be Discipled by others.
36. We fail to seek Godly counsel.
37. We fail to listen to Godly counsel.
38. We fail to be obedient.
39. We fail to be a team player with other Christians.
40. We fail to see our place as part of the Body of Christ.
41. We fail to be the part of the Body of Christ God desires.
42. We serve the church while failing our spouses.
43. We serve the church while failing our children.
44. We fail to serve on Mission trips locally, in our neighborhoods, work, school and all aspects of our lives.
45. We fail to keep our commitments.
46. We fail to make commitments we should.
47. We talk more than we listen.
48. We are relentlessly committed to our being right.
49. We accept praise as an acknowledgment of our efforts.
50. We fail to pray.
51. We fail to fast.
52. We fail to be humble.
53. We believe ourselves to be a great leader.
54. We believe all our words are of God’s authority.
55. We are prideful.
56. We believe we in our own efforts.
57. We fail to rely solely on God’s power.
58. We stopped reading this list at number 10 believing are lives “are good.”
59. We believe we are mature in our faith.
60. We believe we understand the Bible.
61. We believe in ourselves.
62. We fail to know we have a cross.
63. We fail to pick up our cross.
64. We fail to pick up our cross daily.
65. We fail to recognize the power of the cross.
66. We fail to take our sins to the cross.
67. We fail to appreciate the power of grace.
68. We fail to forgive others.
69. We fail to forgive ourselves.
70. We believe in worldly power.
71. We let the sins of the past rule over our future.
72. We fail to live knowing we cannot be snatched out of His hand.
73. We fail to believe in our true value.
74. We fail to reach our true potential with Christ.
75. We fail to believe we are an over comer.
76. We forget who God made us to be.
77. We react rather than respond.
78. We anger easily.
79. We hold grudges.
80. We let the sun go down on our anger.
81. We become indignant.
82. We are self righteous.
83. We speak first.
84. We listen last.
85. We listen thinking of what to say next.
86. We fail to truly hear.
87. We believe we know how someone feels.
88. We think we know the answer for someone else’s life.
89. We fail to seek out others in misery.
90. We fail to walk alongside others who are suffering.
91. We struggle when we need to be strong.
92. We waiver when we need to push forward.
93. We befriend with those Christ knows you should not.
94. We don’t seek out those to witness to those Christ knows you should not befriend.
95. We seek friendships with those mainly like ourselves.
96. We fail to speak the light of Christ into a lost world.
97. We believe the job of witnessing is for others.
98. We believe the Great Commission was a great suggestion.
99. We fail to interpret the Bible under the grace of the two greatest commandments.
100. We believe there are only a 100 ways we can deny Christ.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

A Fool is Immediately Complete But True Wisdom Takes Time

Where are you in your Faith Walk? Are you mature seeking More? Are you a new Believer seeking to be fed? Are you attending a seeker church where faith is spoon fed? Or are you seeking to grow your faith exponentially? A Fool is Immediately Complete But True Wisdom Takes Time. I wanted to invite you today to consider; Where are you in your Faith Walk? Are you mature seeking More? Are you seeking MUCH more as I am. If so, join me today and consider.

Do you seek your own glory or God’s?

Does your ministry create factions or fellowship?

Do your efforts create divisions or unity?

Is your ministry based upon your efforts or God’s power?

Do people brag about what you did or what God did?

Do your words violate the truth of scripture or do you honor God’s word?

Are your efforts a singular experience/for a particular group or are they are the entire Body of Christ?

Do your efforts create a great program or one that is an active living member of the Body of Christ?

Are your efforts about a Leader or a Savior?

Do your efforts focus on the majors or the minors?

Do your efforts lead others back to the congregation of the Body of Christ or is it standoffish?

Is your style one of a Leader/Servant or does it model the life of Christ a Servant first?

Do you embrace and relish the good that others say you do or is it about Him?

Do those who follow you seek to serve the rest of the congregation or does the rest of the congregation seek to serve you?

Do your efforts seek to create fellowship for the entire Body of Christ or just a sect?

Do you boast in your efforts or just those of Christ?

Do you give God all the credit or do you believe you actually had something to do with success?

Are your prideful or are you humble?

Are you seeking your own way or God’s way?

Do you seek to honor and submit to authority or are you seeking to build an empire?

Do you honor God before all or are you honored?

Is your ministry awful or awe-filled?

Are you a team player or the lead dog?

Are you able to be humble or are you honoring self?

Is what you are doing good for a season or will it cease when you leave?

Are you building a monument to yourself or a bridge and ladder for others to find God?

Is your ministry centered on yourself or on others?

Seek today to know God. To truly know God and ask Him to reveal all of the hidden recesses of your heart where Satan has a foothold. A Fool is Immediately Complete But True Wisdom Takes Time.

Seek today to do God differently!!!

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Roswell,  Sandy Springs and Tucker as an Award Winning CPA.

Nehemiah was a man of action. There was a problem that needed to be addressed and after sincere prayer he moved to solve the problem. He was met with a great deal of opposition which I am sure at times was life threatening. But he put all his faith in God to successfully fulfill what needed to be done.

As I was reading our assignment it came to my mind about a couple who is in our reading group who a few years ago decided there was a need to be addressed here in our own country. I know that they prayed about it for some time and eventually knew God was calling them to action. They put together a mission group to go and serve the Lord on an Indian reservation in New Mexico. It was very difficult to get a great following that first year, but with a few couples, themselves and their fellow brothers and sisters in Christ they took on the task of spreading the Gospel to these people through action. They were met with objection from many of the older people as they were still in tune with their old ways (i.e., medicine men) and not very much in tune with our God, if at all.

To make a long story short, they were not moved from their goal of spreading the Word. They have continued their mission by returning every year in the Spring and that few couples has grown in what God continues to do through their efforts . It has not been easy for them as there has been many personal problems of their own that would have ended the mission for most of us. But they have relied on God to give them the strength and will power to continue this very successful mission to all the praise and glory to God. They too are people of action and are living proof, when it is God’s will anything can be accomplished.

I continue to pray that God continues to bless each and every one of you for this great thing you have done. See pictures of where you were and what you did at http://bit.ly/QS0V9

If you listen and watch with an open heart, it will change your world.

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Roswell,  Sandy Springs and Tucker as an Award Winning CPA.

Pueblo Pintado: A Family Mission Trip

Just to give you a bit about where we stay/the trip.

There is a point team of about five that go in early on Thursday to ready the way.

We fly into ALBQ, NM and then travel west on Hwy 10 about 90 minutes and then north to Pueblo Pintado.

There they live in true 3rd world conditions. Their average income is about $10K as we is their annual income. Jobs are scarce and alcohol /drugs are on ongoing problem.

There is only one store for about ten miles and it is about the size of a Quick Trip and did not have gas last year (though in past years it did).

About half of the homes there have electricity and water and the other half or so do not.

I have a video below that is representative of the arid temperature and housing. Elevation is about 7000′ above sea level and it is indeed a desert with a dry heat during the day with cool evenings following.

We have taken as many as 90 but have found an ideal size to be closer to 50.

Would love for you to come and lead maybe fifteen/twenty of your kids.

We have had great leaders return from year to year with some of us going now for the 7th year.

The community there is one of about 400 spread over ten miles in either direction. We are the only church group they see each year.

This year we had about 120 in VBS, 45 in Sports Camp, 25 in Ladies Bible Study, 8 in Men’s Bible Study and 30 at the Senior Center.

I believe the strength of our trip has been our flexibility and desire to honor only God.

Jeff Paske is amongst those to whom we call warriors to the Dine (the Navajo People) and has been with us now for several years. Sports camp under his care and tutelage has grown almost threefold and they have done much to endear themselves to our Navajo Brothers and Sisters in Christ.

We stay at a high school that is beautiful and built for about 400 though only about a hundred go there. There is also a new elementary school in the area and may of the kids live there in dorms throughout the school year as the area is so remote.

At the high school they have dorms for the teachers as the area is so remote and we stay in there on air mattresses. The cost of the trip last year was about $350 to cover food and lodging and ground transportation and about $550 for airfare.

I believe it would be ideal for your group to go out this year and in the future as the point group to get things set up as well as to bond on the trip so you might go on Thursday with the rest of the group showing up on Saturday. After a full week we pack up and head into ALBQ, NM and head into the square downtown and to a local hotel for the evening and then return back on Sunday.

There are a few every year that opt to drive and have been blessed to use SUMC VBS Supplies and work with the local school to provide school supplies as we do fundraising here and to provide book bags for the kids.

I have always felt this to be a great way to marry our kids to our adults and vice versa as the generations seem to merge seamlessly as Christ invades the hearts of those who seek Him.

We have two community nights with one being on Sunday sort of to announce to the area we are there.  We had food, a band and did the everything skit and Jeff Paske spoke afterwards. The other community night was on Wednesday and we had a band, bingo (they love it) and games for the kids to play.

Fridays is water day and Arnold Billie the local fire chief turns the hoses in the air so the kids can dance and play in the rain. Also on Friday we have T-Shirts we give to all of our team as well as all who attend VBS and we sign their shirts and vice versa, then we take care to bring those shirts back with us the following year.

Thursday evening we head up to a local mesa which is much higher than the area around it where we have food, worship music, communion and a ceremony where we pull burn the items we had nailed to a cross earlier in the week.

On Sunday we get up early the first day we are there so that we can be on the Big Screen back at SUMC live with the last two years doing communion and then this year Pete sang Jesus Loves me in Navajo.

I would love for your group to integrate each and every thing that we do with you leading many/most of the devotions.

See God at work at  http://bit.ly/QS0V9 If you listen and watch with an open heart, it will change your world.

In Christ,

john/tami/jeff

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm