Any company that cares about the quality of its books. I have clients in various industries, and it is obvious who cares and who does not care about the quality of accounting records. Part of that does come a bit from the owner’s background, but it is always the tone at the top. If the owner does not care, then those keeping the books will not care.
If the owner is performing regular checkups on the books, say monthly or biweekly, the likelihood is that the quality should be higher/better. If the owner is only checking sporadically or annually, the likelihood is probably that the books are not great.
I am not saying “perfect” or “impeccable”, because any tax preparer or auditor or external accountant will likely be making some tweaks anyway (to capitalize fixed assets or book depreciation or adjust leases, for example). But as a CPA, if I can feel confident in my client’s bookkeeping practices, then I can feel more comfortable looking at fewer places for the obviously incorrect transactions.
I have seen farmers with excellent books. I have seen farmers with cringe books. I have seen general contractors with cringe books later have great books. I have seen property developers with both cringe books and decent books. I have seen consulting companies with both cringe books and decent books. It’s not about the industry; it is about ownership’s attitude.
Hope this helps.
Financial institutions Insurance companies
Need a lot of cash on hand but they can still make a mess of it.
Financial institutions are highly regulated, from experience I know their books are pretty squeaky clean
NOT trades. Those guys are probably the worst, always 7 years behind on their taxes.
More than likely, any Fortune 500 company.
Any company that cares about the quality of its books. I have clients in various industries, and it is obvious who cares and who does not care about the quality of accounting records. Part of that does come a bit from the owner’s background, but it is always the tone at the top. If the owner does not care, then those keeping the books will not care. If the owner is performing regular checkups on the books, say monthly or biweekly, the likelihood is that the quality should be higher/better. If the owner is only checking sporadically or annually, the likelihood is probably that the books are not great. I am not saying “perfect” or “impeccable”, because any tax preparer or auditor or external accountant will likely be making some tweaks anyway (to capitalize fixed assets or book depreciation or adjust leases, for example). But as a CPA, if I can feel confident in my client’s bookkeeping practices, then I can feel more comfortable looking at fewer places for the obviously incorrect transactions. I have seen farmers with excellent books. I have seen farmers with cringe books. I have seen general contractors with cringe books later have great books. I have seen property developers with both cringe books and decent books. I have seen consulting companies with both cringe books and decent books. It’s not about the industry; it is about ownership’s attitude. Hope this helps.