Accounting & Bookkeeping & Small Business Forum

[alex]

I have currently two prospects and therefore two questions.

The first one is a small business owner ( friend of a friend) who apparently has worked with two accountants before. They have left him- he says- because of his “unorthodox” accounting requests (?)
This is what I gathered in a phone conversation and I am unsure as to what to expect. I understand that financial statement that I would produce will state “unaudited” but what are potential liabilities if he uses them to say- get a loan? Can someone please help out? As much as I appreciate the difficulty in getting that first client I am not quite sure this should be the one..

The second prospect is someone who has a small import/ export business of naturopathic products. What do I need to know about keeping books for an import/ export business? Where can I get more info?

Thank you
Alex

[Jennifer T]

Hi Alex,

This is an old thread but I'll try to answer your questions.

"They have left him- he says- because of his “unorthodox” accounting requests (?) This is what I gathered in a phone conversation and I am unsure as to what to expect."

No sense in speculating about what the "requests" are--it's a needless use of your energy. The requests may be legitimate, or they may not, but you'll never know unless you set an appointment to talk to him about his business needs. So go ahead and set the appointment and ask him about these "requests". If you don't like what you hear, don't accept him as a client.

"I understand that financial statement that I would produce will state “unaudited” but what are potential liabilities if he uses them to say- get a loan?"

Do you have some reason to think he needs financial statements for a loan, or are you speculating again? :mrgreen: You could place the phrase "Compiled Statement--For Internal Management Use Only" at the bottom of the financial statements (or something like this). If he does take the statements to the bank, this will communicate that the statements were not prepared for loan acquisition purposes.

Regarding potential liabilities if he does use them for a loan: I think it depends on your state. Here in CA there really aren't any, as far as I know. I recently witnessed a regular bookkeeper-type (self-employed, non-CPA, like you and me) sign a compiled income statement for an SBA loan, and the loan people didn't seem to care one way or another.

Personally, I don't place any phrases on any financial statements I prepare. I just don't feel the need to do it. But I understand your hesitation, being new. So go ahead and place a phrase on the bottom, and politely let your client know that the statements shouldn't be used to aquire a loan.

"As much as I appreciate the difficulty in getting that first client I am not quite sure this should be the one."

Wise words! :D No client is better than a bad one, trust me! Bad clients are an incredible waste of your precious time and energy and are not worth the money you get from them.

"What do I need to know about keeping books for an import/ export business? Where can I get more info?"

I've never done the books for an import/export business. Post a question at the following link. There are *many* knowledgeable people there and you will probably get a good answer:

http://www.accountantsworld.com/newforums/default.aspx

Take care!