Addressing New Client Start-up Issues for Corporate/Business Taxpayers by Duluth CPA

Addressing New Client Start-up Issues for Corporate/Business Taxpayers by Duluth CPA

When we get new clients, like a doctor we do diagnostics and evaluate the past medical/financial history of a client. The below is a sample letter of what we might send to a client to address open issues that are found:

So that we might properly evaluate how best to address your 2009 corporate income tax return please let me know:

-What your 12-31-09 unpaid payroll taxes are. The tax return showed $20,000.
-What the $10,000 negative Accrued Payroll account was for at 12-31-09. Accrued Payroll should show as a credit and this is showing as a debit. Please review/advise so that we might correct and amend this error.
-The 12-31-09 Balance Sheet shows a balance of $4,000 of loans to you. Please confirm/advise if correct.
-The above are the only loans reflected on the company's books at 12-31-09 and you had indicated when we met that you had other loans outstanding at that time. Please review and let me know total of other loans payable by vendor (and if they financed a particular item).
-Please let me know what the amount of the outstanding stock is of the company and what you paid by share so that we might record accordingly.
-Forward copies of your 2008 and 2009 Personal Income Tax Returns
-Find out what the offsetting entry was for the $25,000 listed as a negative liability on the 2009 corporate income tax return.
-You had indicated that you had been paid no Shareholder Distributions in 2009 yet your internal 6-30-10 financial shows $25,000 being paid this year.
-If your prior accountant is almost done with your internal data through 9-30-09, then I suggest you let them finish. If they cannot have within five workdays I suggest we do them.
-When I get the last financial done by your prior accountant please have them send to me open notes payable and amortization schedules and period end bank statements and bank reconciliation and a detailed fixed asset list detailing depreciation and accumulated depreciation by year.

John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!