I'm a not a
lawyer, I'm a CPA. Why
should I be
responsible for
recommending my clients
have annual
minutes?
In every practice there are
clients the CPA knows or
suspects do not have a lawyer
to help them with corporate
matters. How the accountant
arrives at this conclusion is
less important than the fact
they know it. These clients are
commonly smaller, more closely
help corporations, and are
frequently found
to be less stellar at required
record keeping, placing
both their personal assets
at risk and exposing themselves
- and the CPA - to lengthy,
costly and sometimes hostile
litigation.
Why does
knowing or even
suspecting a client
doesn't have legal
counsel obligate the
accountant?
Whether or not the accountant
should have taken action can
become an issue when a
corporate client is sued or
audited, both more frequent in
today business climate than
ever before. If the client is
audited and the corporate
structure is disallowed for tax
purposes or loans to or from
the company are disregarded or
recast as income, the client
can suffer a negative impact.
Similarly, if the client is
sued and loans are disallowed
in determining the business
entities exposure to a creditor
or completely disregarded and
the personal assets of the
stockholders exposed, that can
clearly be a negative impact
for the client.
In both of these instances,
while the accountant may not
have technically done anything
wrong, the resultant finger
pointing may expose the
accountant to incidental
litigation. At best, the client
may be lost. At worst, the
client or its shareholders may
look to the accountant often
the company's sole professional
advisor for compensation of the
damages incurred. A situation
much better avoided!
How
can you avoid this
potential
liability?
Assisting your clients in
protecting and retaining their
hard earned assets is very
valuable.
Simply make certain you have
informed your corporate clients
of their obligation to hold and
record annual meetings and
memorialize loan
transactions.
Will
this require a lot of
effort, paperwork, or
tracking?
That's where webMinutes.com
comes in
.
WebMinutes.com
is a sophisticated online
service and resource that helps
closely held businesses keep
their records in order. There
is no cost to the accountant
and our services are fast,
affordable and easy-to-use for
your client. Just allow us
to keep your clients
informed of their ongoing
obligations and webMinutes.com
will take care of the rest.
By recommending
WebMinutes.com
to your clients you will meet
your responsibility to keep
them informed of their legal
obligations and protect
yourself against potential
liability, whether they take
advantage of our minutes and
loan documentation services or
not.
Consider
WebMinutes.com
your partner in providing peace
of mind for advisors and
clients alike.
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