This is a brief lesson on the basic parts of the CPAs’ financial reporting and accounting system. The first thing you have to know is what is CPAs’ financial reporting? CPAs, or Certified Public Accountants, are accountants that work for a company and will prepare and file the year-end financial statements for that company. CPAs work for firms before they become lawyers or even own their own firms, but most people hire CPAs to help them with their financial statements. A certified public accountant’s job description is quite detailed, but in the interest of this discussion we will touch on three important topics that affect your accounting and financial reporting.
The first topic we will cover is CPA Notes. There are many kinds of CPA Notes including the following: Cash notes, negotiable instruments, promissory notes, open loans, note holders receivable, and the seller financing note. Your financial reporting system will help you determine which type of CPA Notes you need to create.
In the second topic we will discuss CPA Note creation and distribution. To create your CPA Notes you will need to decide on which type of CPA Notes you want to issue and what type of entity you will use to service them. Once you have determined these things, your task is to create your financial statement or report to either the U.S. Securities Exchange Commission (SEC) or the Internal Revenue Service (IRS). Your financial statements will include one or more CPA Notes, so make sure you create your financial statements correctly. Your financial statements will also include information on any loan payments, stock purchases, property sales, income taxes and much more. If you don’t format your documents correctly, your financial statements won’t match the standard requirements needed to be reported properly to the SEC and IRS.
The third topic we will discuss in this series is distribution. How do you distribute, or list your CPA Notes in your accounting system? You can list them in your current balance sheet, your profit and loss account or you can sell them if you would like to get more exposure to the investment community. The decision is yours but it is best to get your ducks in a row before you decide because you may have to change the name of your company if you want to move your account. Your accounting software should have “lookup CPA Notes” abilities, so you can easily look up your various CPA Notes and list them where you choose.
Once you have created your company, you should ask your bankers, brokers and other lending institutions to provide you with loan offers for your CPA Notes. They will want to see proof of your solvency so they can be certain you can pay back the loan. Your bankers and lenders will give you different loan offers to choose from but the one that is best for you should be chosen for one main reason – you should be able to make regular monthly payments. So you will be able to distribute the money from the sale of the notes according to your budget. If your company can make regular payments on the loan each month the company will stay financially healthy even with small losses because you have paid back the loan. The credit company is happy with this arrangement because it keeps you as a lender from having to file bankruptcy and they are getting paid.
One way you can get more cash out of your CPA Notes is to sell them for cash immediately. You have plenty of time to find buyers for your notes. Most people are not in a hurry to get rid of their old notes. The time frame for selling your CPA Notes can range anywhere from a few months to a few years depending on what your business is doing at the time. The advantage of selling your notes sooner rather than later is that you can get paid quickly with the cash from the sale. Even though the process may seem daunting, it is actually a simple process when you have a qualified expert to work with.
Selling your CPA Notes is one of the smartest things you can possibly do for your financial future. You can get a much larger lump sum of cash by selling your notes rather than waiting to collect monthly payments from the bank. You can also expect to get a decent interest rate when you sell the notes for cash. This can save you a lot of money over the life of the loan, which you can use to invest for yourself or pay down some other debt.
When you sell your notes, be sure to check the terms of the sale clearly with the bank. You don’t want to end up owing more money than you have sold the note for. Also, be sure to compare notes with others to see what type of cash they are offering. The terms of the sale can change between companies so be sure to get the best price for your notes. Then, you will be able to get paid in cash quickly and efficiently and keep your business afloat.