During my career in public accounting I have developed expertise in three areas that I consider to be specialized services. In each of these specialties, I represent you, my client, in determining that you are receiving accurate information and/or the revenues to which you are entitled under a contract or an ordinance.
Royalty or franchise revenue audits.
In these situations, you are a franchisor and as a part of your franchise agreement, the franchisee is obligated to remit a certain percentage of their gross business or some other factor of their income. Perhaps you are an inventor and own a patent which you have licensed to a manufacturer or distributor. In return you are entitled to a fee for the use of your patent. My job would be to examine the franchisee or licensee's books and determine that you have been paid the correct royalty or franchise fee.
Municipal revenue audits.
Many cities have enacted bed tax ordinances which are similar to a sales tax on hotel rooms. In other cases, municipalities have granted concessions that provide for a percentage of concession revenue to be paid to the city. I know of at least one city that enacted a tax on the collection and disposal of biological waste. I have been engaged to examine the records of hotels, concessionaires, disposal companies and others to assure the municipalities that they were receiving the correct revenues according to their ordinances.
Due diligence audits.
I have been retained by purchasers of business or elements of business to examine the sellers accounting records and determine that those accounting records are reliable. I also assist the purchaser in developing assumptions and ratios in order to develop a purchasing, operating, and management strategy, financing requirements as well as tax planning. Often, a key element in the acquisition of a business is the allocation of the purchase price among the assets acquired, so as to maximize the future depreciation and other current deductions.
Copyright 2009 Stanley C. Henslee