Technology as an Emerging Business Niche

One exciting niche for CPAs is emerging business, and one exciting emerging business area is technology. Practical Accountant reviewed this area of practice at Levine, Katz, Nannis + Solomon in Needham, Massachusetts.

Technology companies have thrived even after the bursting of the bubble recently.

Technology companies financed by venture capitalists welcome alternatives to the Big Four. Sarbanes-Oxley has created opportunities where an IPO is not imminent. 

Raising capital is an important service where the CPA firm can help. Introducing clients to venture capitalist firms and angels requires a good deal of networking and speaking engagements. In addition, clients need help with systems, business plans, bank loans, compensation planning, and tax planning.  

LKN+S is closely involved with companies in this niche. It is an active member and meetings host of a number of networks and forums. It serves as a resource bank of contacts that can help companies in the field.

It advises entrepreneurs in start-up companies that the advisory team is critical to their success, particularly in raising capital. The most important are the lawyer and CPA. The accounting firm must know the industry, not just the software. It should be familiar with stock option plans and phantom stock plans, independent contractors v. employees, and revenue recognition conventions in the industry.

The firm must be familiar with FASB 141 and 142.

Niche services are more important today than ever. 

For the complete article, see