BRAD BORNCAMP, CPA, LLC
Certified Public Accountant
Certified Valuation Analyst
Certified Financial Planner
1319 W. Baseline Rd, Suite 201
Lafayette, CO 80026
Accounting is the process of adjusting the balances on the client’s books to reflect activity that has not been recorded by their bookkeeping system. It also involves the preparation of financial statements which is discussed under the “Financial Statements” page on this website. The term “accounting” can also be used to include a host of services offered by accounting firms, which may include bookkeeping, as well as sales, payroll, property, and income tax preparation. Another term often used to describe these types of services is “write up” services. For purposes of this web page the term accounting is used separately from these other write up services to differentiate the level of expertise needed for compliance with accounting and tax methods.
This page will discuss only the accounting services related to adjusting the clients books. In this respect, accounting involves applying the concepts of generally accepted accounting principals to the company’s activity to reflect the proper accounting and tax methods. Most companies use either the cash method or the accrual method of accounting for both book and tax reporting. These methods should be applied consistently each year in order to have meaningful financial statements. These methods must comply with both financial statement standards and tax reporting requirements.
In this context, the accounting process starts where the client’s bookkeeping leaves off. It can be simple or complicated depending on the activity being recorded, the client’s level of expertise, and the condition of the client's books. The bookkeeping systems should be used to record all the transactions of the company and to reconcile cash accounts to their respective bank balances. However, accounting services may overlap somewhat if the client’s bookkeeping is incomplete, or some of the steps have not been done.
What To Consider
Each client’s business activity and systems are unique. There are many considerations affecting the extent of accounting services that may be needed. These include some of the following.
• The accuracy of the bookkeeping • The accounting methods used
• What bookkeeping software is used • The complexity of the business activity
• What reports are available • The client's reporting requirement
Where To Start
Even if you have already a bookkeeping system in place, the CPA will need to gain an understanding of each client’s business activity and their reporting systems. The accounting services should be based on what the client needs and how much they can do themselves.
Although accounting fees are an important concern, the accounting services are usually dictated by the business activity, not the size of the business. A small business may have complex accounting issues which, if not handled by employees, may need to be done by outside professionals. It is usually more economical for small businesses to hire an outside CPA, even at relatively high hourly rats, than to hire a full time employee with the necessary accounting expertise.
Each business may have a different situation and different reporting requirements. The accounting services they need will vary accordingly. The firm of Brad Borncamp, CPA, LLC works with each client to find economical solutions to their accounting needs. We specialize in supporting QuickBooks software, but can provide accounting services for almost any system.
The firm of Brad Borncamp, CPA, LLC offers more than tax and accounting services. We also assist clients with training personnel and finding economical solutions.
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