As part of our client intake process, Schulte & Company performs an initial review of every new client. One of the goals from this initial review is to ensure that accounting systems and procedures are in place to ensure accurate and timely financial reports and tax returns. The initial assessment includes:
- Review of Current Operations,
- Understand and Evaluate the Cash Flows of the Business,
- Accounting Clean-up, and
- Recommendations for improvement.
As part of our on-boarding process, S&Co enters every new client’s prior year tax information into our systems. This facilitates a review of the tax returns that were prepared by the predecessor and enables S&Co to increase its familiarity with the new client. This critical step often results in the discovery of errors and omissions.
The following is an actual fact pattern from a client that recently joined us.
A closely held business with a history of business acquisitions became concerned about the price they were paying and the service they were getting from another CPA firm. While Schulte & Company was able to provide a substantial savings in the accounting fees they were paying, the real benefits for the client began to be realized after they joined us.
Our on-boarding process allowed S&Co to identify substantial errors in how the business acquisitions were being treated. It became obvious that the prior CPA (a) did not read and understand the purchase agreements or (b) simply did not know what they were doing. S&Co amended several years of corporate tax returns and restated the company’s balance sheet. The resulting federal and state tax refunds were in excess of $100,000 and the company continues to enjoy incremental tax deductions now that the costs of the acquisitions have been properly recorded.
In summary, the client reduced their accounting fees and saved six figures in the process.