Tax Planning & Compliance in Edina, Minneapolis
WHO WE ARE
Rapacki + Co is a CPA firm in Edina, Minnesota focused on serving your unique needs. We assist in building a financial future with your goals in mind. We keep things simple and give personal service without excessive fees or complications. At Rapacki + Co. our goal is to make your life easier by offering the resources that benefit your life & business.
A client focused relationship is our priority from the top down. Our founding principal, Joe Rapacki, Jr. CPA, has a passion for his work & business. He has more than 20 years of public accounting experience and understands the challenges of executives, small business owners, young families and retirees. Whether it’s tax planning, payroll, or financial accounting his experience and wisdom are indispensable. He is committed to assisting you in achieving your financial goals.
Joe holds master’s degrees in Taxation and Professional Accounting, while consistently continuing his education through professional development in order to stay current with the changes in the tax arena. As an entrepreneur and family man, Joe’s life experience gives him the wisdom to understand diverse tax situations.
WHAT WE DO
Rapacki and Co. is dedicated to being your home for all Big Picture tax planning needs including, tax preparing, bookkeeping, training, small business consulting, IRS issues and financial planning expertise through a partnership with 360 Financial.
This is our promise to our clients to keep building and improving in order to design a financial life that is less complicated and more accessible within all the added benefits of our Big Picture accounting services. We want to support you in every facet of your finances from insurance, investing, retirement and of course tax planning.
Rapacki and Co.are members of the Private Companies Practice Section of the AICPA’s Division for CPA Firms. Our work product and quality controls are regularly examined and certified by an expert group of CPAs. We stand by our reputation and are happy to share the results with you.
We believe the value we provide is not in the time spent processing your returns, but in the impact our work has on your finances and peace of mind.
CLIENT-CENTERED FOCUS
Client-centered focus means:
- Responsive-communicates clearly the necessary requirements and responds in a quick, yet accurate manner to any questions.
- Empathetic-to the situation of the client with a determination to understand and explain any concerns that may arise.
- Adaptable-or being able to adjust financial goals to the specific needs and life changes of the client.
- Diligent-a motivation to prioritize the needs and goals of the client while working towards complete client satisfaction.
Financial Statements
We’re able to provide clients financial statement services. We can assist with any required bookkeeping needed to prepare financial statements.
As CPA’s, we are required to follow procedures and meet many rigorous policies and standards. One of the most important standards is SSARS, which stands for “Statements on Standards for Accounting and Review Services”. The newest version is SSARS 19.)
Q: Audits, Reviews, and Compilations
Audits, Reviews, and Compilations
In accounting, there are three tiers of financial evaluations: audits, reviews, and compilations. Our firm only issues compilation and review reports (no audits).
Q: What exactly is an audit?
An audit is the highest level of assurance. It provides a reasonable level of assurance that the financial statements conform to Generally Accepted Accounting Principles and are free from material misstatement. While rigorous, audits are not absolute guarantees against inadvertent error or deliberate misstatement.
Q: What steps are taken to make an audit the highest level of report?
The CPA is required to have an extensive knowledge of the organization’s industry.
• Auditors perform search and verification procedures, which may include obtaining written confirmation of accounts receivable, and examining contracts and other supporting documentation. They also include physical reviews, such as observing year-end inventory counts.
• Auditors also review internal control systems to identify potential risks to the company that are included in the final audit report.
Q.What is a review?
A: Reviewed financial statements provide limited assurance that the statements are free from material misstatement and conform to Generally Accepted Accounting Principles.
Q: How is a review different from an audit?
The CPA is not required to have extensive knowledge of the organization’s industry but must have a specific understanding of the type of business being reviewed.
|• If information provided appears questionable, the CPA will take additional steps in performing a review. However, a review does not require the CPA to analyze the internal controls of the business or provide risk assessment.
Q. What is a compilation?
When a CPA prepares a compiled financial statement from data provided by the client, it is called a compilation. This means that the CPA does not express any form of assurance regarding the financial statements. The CPA also does not provide an analysis of internal controls or risk assessment. This example of recommended language to be used in a compilation demonstrates the limited scope: “I (We) have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them.”
Q: What is required for a compilation?
If the CPA becomes aware that information supplied is inaccurate or misleading, she/he must request additional information. If the financial statements contain departures from Generally Accepted Accounting Principles, this must be disclosed by the CPA.
• The CPA is required to issue a report whenever completing a compilation of financial statements for nonpublic entities
The type of review required is determined by both cost and need. The SEC requires all public companies to be audited annually. Larger private firms may also benefit from an audit’s thorough report.
Q: The Requirements of SSARS 19
SSARS 19 requires that we obtain an engagement letter before we prepare and issue financial statements. This includes compilation and review reports, as well as financial statements issued for management use only. We may not be considered “independent” if we perform certain services in preparing your accounting records (see below). We are required to disclose any “lack of independence” in the compilation report. A review report may not be issued if we are not independent. If we change the type of engagement we are performing, we are required to get a new engagement letter.
Q: What is an engagement letter?
SSARS 19 requires us to “document our understanding with the client in writing”. The engagement letter is used for that purpose.
Why is the engagement letter so long?
We are also required to have a peer review every three years. As part of the peer review, we are required to document the system of Quality Control within the firm. The engagement letter is written in such a way as to ensure compliance with our system of Quality Control, AICPA Independence rules, and SSARS 19 requirements.
Q: What Is Meant by “Independence”?
What Is Meant by “Independence”?
Independence is a complex subject. In order to be considered independent, CPA’s are not allowed to be part of client management or ownership, or perform functions that would ordinarily be performed by management. Here are some examples of when independence would or would not be impaired in the performance of bookkeeping services
Independence - Would not be impared
| Independence Would Not Be Impaired | Independence Would Be Impaired |
| Record transactions for which management has determined or approved the appropriate account classification, or post coded transactions to a client’s general ledger. | Determine or change journal entries, account codings or classification for transactions, or other accounting records without obtaining client approval. |
Q: Independence - Would be impaired
| Independence Would Not Be Impaired | Independence Would Be Impaired |
| Record transactions for which management has determined or approved the appropriate account classification, or post coded transactions to a client’s general ledger. | Determine or change journal entries, account codings or classification for transactions, or other accounting records without obtaining client approval. |
Small Business Solutions
Today is the best preparation for what tomorrow may bring.
Business Services
Whether you are starting a business or have an established business, we have the knowledge and resources to help you create or improve a successful enterprise.
We’ll help you make decisions important for a sound business strategy. Your strategy might include:
● Entity selection and support in starting a new business.
● QuickBooks setup and training.
● Accounting for businesses. That includes bookkeeping, assistance with your payroll as well as payroll taxes, and support in the preparation of financial statements.
● Comprehensive tax services. We’ll make sure you take advantage of all of the deductions to minimize your taxes.
● Retirement plan selection.
Every penny counts when you’re building a business on your own or even if you have a team of employees. You need to know what your expenses are, including what’s going out, what’s coming in, and what you should prepare for in the future. That’s a lot of work for a business owner to take on by themselves, and in most cases, an in-house accountant isn’t fiscally feasible.
Ensure you get the accounting assistance you need by working with our firm. We can handle the numbers, so you can get back to focusing on providing your customers with the best products and services you have to offer.
