Average Los Angeles CPA firms might focus on one business model, performing services for that structure extremely well. For example, a firm might court privately held businesses and be very good at associated auditing services. The problem with partnering with a specialist Los Angeles CPA firm is that they can’t really support your business over the long term. Business environments change and your needs change with them, often in a less than predictable manner. To deal with all of these unexpected bumps and curves, you’ll need more than a couple of experts and advisors: you’ll need an entire team.
One of the prime examples of this is found in how the different corporate structures of private, closed and public companies necessitate different accounting practices. When you combine this with the fact that many companies that experience growth at or beyond planstend to experience at least two, if not all, of these stages as they reach maturity. Prepare yourself for success by hiring a CPA firm that can handle all of these configurations of ownership as well as assist with the transitions by handling complicated mergers and acquisitions.
Privately held companies are often owned by an individual or small group of individuals with relatively high net worth. Both the personal and business financial decisions made by the owners and leaders of these corporations often have a profound effect on the organization. While this layout is attractive for its stability, the wealth and revenue have to be managed and recorded precisely to stay in compliance with various laws and regulations. A good Los Angeles CPA firm should be able to handle any auditing necessary to ensure this compliance. They will also be able to manage the assets that allow you to attract and retain top talent by advising on and administrating benefit plans and retirement funds. If there’s any possibility of an IPO in your company’s future, make sure you engage a firm with the capacity to help you through this tumultuous transition.
Closed corporations or closely held companies face several unique financial challenges. One of the most prominent of these is the management of stock and optimization of such assets for tax purposes. You might think that, since companies with closely held stock are occasionally traded publicly, they are treated similarly to other public corporations. However, equity in these shares offers a different type of benefit than that of stocks in a public company, and it’s treated differently on taxes. A CPA firm with staff or partners knowledgeable in this type of company should be able to walk you through the ways you can retain the stability of a closed system while reducing tax liability to the absolute minimum level possible.
Companies traded on the open market are subject to volatility, but they also have access to resources that can generate explosive growth. The meticulous measurement and management of resources is the key to success during periods of change. Make sure you partner with a Los Angeles CPA firm that has not only the resources but also the discipline to see you through periods of instability and uncertainty.
The right accounting firm can see you through transitions and optimize growth for you during these three periods of stable ownership formats. For more information about how it’s done, contact an expert in the Los Angeles area.