CPAs can add real value by discussing
and advising small business owners and
entrepreneurs on their internal controls.
Although internal controls do effectively
reduce the risk of misappropriation of assets,
such as embezzlement and theft, many other
operational and compliance elements can
also be improved. Controls represent real
increases to the bottom line of small and
medium-size entities by ensuring that all
sales are billed and appropriate collection
efforts are engaged, discrepancies in cash are
followed up on a timely basis, expense
reports are monitored, time is accurately
reported and paid, and expenses are authorized
and prudent, among other best practices.
CPAs are skilled, experienced, and
trained in these areas; thus, they should make
it a point to discuss how working collaboratively
with business owners and managers
is in the organization’s best interest;
over the long term, the benefits will outweigh
the costs.