As an Orlando accounting firm we know that maintaining the finances of a company is a very complicated task to deal with, especially if it is a startup business. Deciding how to deal with accounting and finance of your startup business is crucial at this stage. Many of the startup businesses fail to succeed is because of the mismanagement of their finances. This is the reason, it is best for a startup business is to outsource. There are many accounting firms in Orlando that can assist you with their finance and accounting services. The startup businesses must carefully choose the right accounting firm that suits their needs.
Selecting the Right Accounting Firm in Orlando
Of the many accounting firms in Orlando, it may get difficult to select one. You must first understand what services you want and what services are those firms offering. Select the one you believe will fulfill your requirements in the best possible manner.
- Know your Options: Research the local accounting firms in Orlando and their services. You must understand that larger accounting firms already have well-established organization they are working for. Your startup business may not be given the priority for them as your firm will generate a low profit amount for them. Instead opt for a smaller accounting firm. For a small firm, your case will be significant for them. They will put more effort in your case as compared to a larger firm.
- Accuracy Guaranty: Look for a firm which offers some guarantee for their accuracy of accounting services. Find out what the firm is willing to do in case the return is rejected. Do they guarantee refiling your case with no extra charge, what will be their support in undergoing an audit, will all your records be kept, will they offer services for preparing and managing receipts for an auditor. These are a few things to ask the accounting firms in Orlando before selecting one.
- Support Service: Many accounting firms in Orlando offer their services by showing up on the text season and helping you out once a year. But, there are some that offer their continued support service all year long. They ensure all your taxes are maintained regularly, provide a tax plan for you to decrease your burden every year and pre plan with you on your possible future expenses.
How Can Outsourcing Benefit You?
When opting for an outsourced accounting firm, it is important that you understand the benefits it can provide your business.
- Cost Reduction: In order to maintain the finances, CFO, bookkeeper and a controller is hired by a startup company. However, you can avail the services of all three from an accounting firm. An accountant firm usually offers a package according to the services you require. Through hiring an accountant company, you can save costs of a team of employees.
- Diverse Experienced Experts: The group of experts in accounting firms in Orlando has worked with various different companies. You can benefit from their diverse expertise and knowledge.
- Focusing on Other Core Operations: Once you have hand over the financial responsibility to experts you will have more time to focus on core operations of your startup business. Otherwise your time and energy will only be dedicated budgeting, financial analysis, bookkeeping, payroll generation and processing. He gets diverted from other essential business tasks which slow down the entire working of the company.
How Sarbanes-Oxley Act can affect Your Company?
The summer of 2002 saw the implementation of Sarbanes Oxley Act, co-authored by U.S. Senator Paul Sarbanes of Maryland and U.S. Republic Michael Oxley of Ohio. High profile failures of Enron, Tyco International, WorldCom, and other firms led to a complete loss of confidence in public enterprises.
President George W. Bush signed Sarbanes-Oxley Act on July 30, 2002 to restore investor trust on public enterprises stained by the financial scandals of these big firms.
The aim of Sarbanes-Oxley Act, or SOX, was twofold:
- To prevent future financial frauds, and
- To ensure reliability of financial information and reform the public companies reporting standards.
Salient Features of Sarbanes-Oxley Act
Sarbanes-Oxley Act also known as ‘Corporate and Auditing Accountability and Responsibility Act’ or ‘Public Company Accounting Reform and Investor Protection Act’ is a US federal law that is applicable to all US public company management, boards, and public accounting firms. Certain provisions of the Act also apply to nonprofit and private companies.
The purpose of this Act is to increase transparency and avert chances of frauds and deception. SOX Act calls for proper management of electronic and physical records of the company. Organizations and enterprises are required to keep hold of the electronically stored information for up to five years. These past financial records can come in handy when investors what to make decisions apropos investing in shares of the company.
Furthermore, SOX Act forbids organizations to take retaliatory action against whistleblowers. The companies, on the other hand, should encourage whistleblowers to report discrepancies in the financial reporting to avoid legal consequences against the company later on.
Penalties for not conforming to Sarbanes-Oxley Act
Companies can face severe criminal penalties and sanctions for not adhering to the Sarbanes-Oxley Act. The penalties can range from business closure, cancelled licenses, multimillion-dollar fines, and even a jail term of up to 20 years.
There is no denying the fact that consequences of not adhering to the Act are drastic. The severity of penalty lashed out to the company depends upon section of the Act that was violated along with the premises on which there was a breach of the Act.
How Can Orlando Accounting Firms Help You?
Since the Sarbanes-Oxley Act requires the retention and preservation of accounting records, the need to avail the services of accounting firms in Orlando has increased even more.
The financial scandals that rocked the corporate world at the start of this millennium have led to increased regulation and compliance of the organizations and enterprises. Although this Act is applicable to public companies, yet private companies are also feeling the pressure of the Act. The politics of SOX Act has reverberated to such an extent that private companies who do not conform to the Act face difficulties in obtaining credit to finance their operations.
This has impelled the need to get help from experienced and professional accounting firms in Orlando. The accounting firms in Orlando can help you in maintaining proper accounting records and ensure that they are easily accessible as and when required. They make certain that your firm adheres 100% to the requirement of the Act.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, and Celebration, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.