Continuing Professional Education

The Importance of the Small Business Owner to Growing Your CPA Practice

(1.0 CPE)

  1. The Size of the Small Business Market
    1. HR Bill  5297 approved 9-28-10 changed federal government size standards to qualify 28,000,000 out of 30,000,000 companies in the United States to be eligible for government financing programs and government contracting
    2. What are the new federal standards?
    3. The Federal Government’s Push to Assist Small Businesses
  2. The Importance of Small Businesses to the Health of the US Economy
    1. Economic Impact
      1. 55% of the USA’s GNP
      2. 70% of the Federal Government’s tax base
      3. 60% of all job creation
      4. IRS’ classifications of businesses by revenue
    2. The Performance of Small Businesses
      1. Business Failure Rate 80%
      2. Reasons for Failure
        1. lack of appreciation for the importance of accounting by business owners
        2. no accounting or inferior accounting
        3. lack of the correct type and amount of capital
        4. lack of business education i.e. the business side of the business
        5. lack of exit strategy
        6. lack of leadership and execution
    3. Solutions
      1. CPA prepared financial statements
      2. use long term financing as provided by government loan programs
      3. interpreting financial statements, understanding profits vs. cash flows
      4. SBA 8-a government contracting and “Teaming Agreements” to increase revenues
      5. preparing an exiting strategy with the concept of “Strategic Wealth Targeting”
      6. understanding key financial ratios
  3. Growing Your Practice
    1. The small business sector is underserved and offers the greatest opportunity to grow your practice
    2. Tools for CPAs to help small business clients and differentiate your practice in the marketplace
    3. GAAP classifications for financing
    4. Strategic Wealth Targeting®
    5. Long term working capital strategies