When you think of the crowdfunding culture that has sprouted up in recent years, you may not think of a certified public accountant (CPA) as your typical crowdfunding professional. You should think of a CPA though because a CPA’s involvement in a project can be integral to a startup’s success. The success of the crowdfunding arena opens up yet another career opportunity for CPA professionals. Here is how a CPA helps a startup before, during, and after crowdfunding.
With this alternative way of raising capital for a fledgling company, there are many investors, and they all want to see that the company that they have invested in is growing and provides a robust return on investment. A CPA will advise the startup founders about the advantages and disadvantages of this fundraising approach and help position the new business with potential growth projections and estimates of the company’s return on investment.
The legal and taxation complexity that is inherent in crowdfunding necessitates leveraging the CPA’s professional knowledge so that all associated with the business know what their legal liability is in terms of the company’s financial structure and their financial commitment.
There is a lot of variability in crowdfunding which necessitates multiple financial scenarios to be considered. CPAs are frequently called upon to consult with the startup founders to create financial projections based on the level of funding the business receives. This also involves variables including demand for the company’s product, order fulfillment ability, and costs for materials.
This area of employment opportunity may be an exciting career advancement for someone armed with business experience and a master’s degree in accounting. If you are looking to advance your career with further education, Maryville has an online master degree in accounting program that includes a bridge program for those that do not have an undergraduate degree in accounting.
The boom of crowdfunding fuels added demand for traditional CPA services such as bookkeeping and tax preparation. Any business needs those two accounting tasks done, but the complexity of the crowdfunded company’s financials means more hours spent by CPAs to keep records updated and all reports current and accurate. Another layer of financial work stems from keeping all equity investors informed with financial reports on a regular basis.
Businesses will also need independent financial auditors as well. In fact, the Securities Exchange Commission recently released new requirements for businesses to be more financially transparent and be audited by the standards of the United States generally accepted auditing standards or the Public Company Accounting Oversight Board standards.
Much of the work of making a crowdfunding effort successful is grounded in solid accounting knowledge. The nature of this type of fundraising is a little risky, but it can be more dangerously risky without the involvement of a CPA to guide the financial planning, consulting, and delivery of accounting services.
This new trend in business development means that more CPAs are needed in the field. When you get an online masters degree in accounting from UAB, you learn from leaders in the industry and expand your skills in order to sit for the CPA exam.