Art of Accounting: Memorial Day

Today is Memorial Day and should be a solemn day to remember the members of our armed forces and first responders who lost their lives defending and protecting our nation and our way of life. Instead, we have BBQs and use this day to kick off summer beach and swim parties. That is fine, but we should also set aside some time to reflect on our freedoms and the people who paid dearly for us to enjoy them today. I know I will. I will also proudly fly the flag in front of my house.

We are CPAs and have a vital role in protecting our freedoms. Not in the same way the armed forces do, but still in a very important way. Without comparing us or lessening the role of those brave people who died for us, CPAs participate in our freedoms by helping to protect our economic system. We provide assurances that the financial statements issued by companies fairly present their financial position and the results of their operations and cash flow, and that their internal control systems are sound. These statements are a cornerstone for investors and lenders. Without either group, businesses would not be able to raise capital or borrow to fund their operations, assuring orderly capital markets and our capitalist system.

We also help businesses that are starting out with operational and cash flow projections that provide indications of future success and how much the business needs to begin and maintain itself until its cash flow becomes positive. We prepare many of the tax returns for individuals and businesses that provide the revenues to the various government agencies that protect us, maintain order and our armed forces, provide vital services that we cannot do individually, and ensure a system where we can live together in peace and do business globally with honesty and in a trustworthy manner. 

CPAs also have become the primary business advisors and consultants to our clients, which also include charitable and not-for-profit organizations. We are part of every discussion and plan and put the visions into understandable, workable presentations of the financial viability of those visions.

It is not easy to become a CPA and to maintain the license. We need to comply with the highest ethical standards and meet vigorous annual continuing education requirements. We work hard to become licensed and continue to work hard to maintain that license. And we work hard to continue earning the trust clients, capital markets and investors place on what we do. 

This Memorial Day, take some time away from your festivities to say a prayer for the brave men and women who lost their lives so we could enjoy the festivities we are a part of today. Also take a moment to be grateful for the value we, as CPAs, provide to maintain the freedoms to continue doing business the way we have been since the founding of the United States of America, our great country.

God Bless America! 

Do not hesitate to contact me at emendlowitz@withum.com with your practice management questions or about engagements you might not be able to perform.