The job of business valuator is one in the accounting field in which there are many job postings. It is one that requires you to have CPA designation, and many certified public accountants are now striving to attain the certification required to obtain this type of job. Therefore, it is one in which there are many opportunities for advancement in your accounting career. In this position, you will appraise all types of businesses to determine their financial worth. As a CPA, you can contract out your services to businesses and prepare their tax reports and provide other accounting services, and appraise the value of an estate or a company. You may have several clients each with different needs in appraisal so your work will be very varied.
A business valuator crunches the numbers, as do other types of accountants. You will scrutinize the assets and liabilities of the client’s business as well as the amount of working capital for the operation of the business. This task will help you prepare a profit and loss statement to determine how financially sound the company is. Sometimes, a company may want a valuation to determine how much money it has to invest or spend on new projects or acquisitions. If the owners are selling the company, then they need the valuation to determine the selling price and the potential buyers need the valuation to determine if they can make more money by acquiring the company.
Another aspect of the business valuator’s job is to assess the operation of the company in terms of how competitive it is in the market. Many companies want this type of service to determine how they compare with their competitors and look for ways to increase their edge in the market. In this capacity you may even have to look at the company executives to see if how well they contribute to the financial health of the company. The company’s tax burden is another issue of finance that a business valuator must look at. If the company has high tax bills, then this could be the cause of a loss of profit.
You can obtain a job as a business valuator working in a public accounting firm. You can also set up your own business and take on your own clients. There is no difference in the type of work you would do in these two situations. There would be a difference in the hours you work and the salary you earn. In an accounting firm you would have a standard workweek, but on your own you will work your own hours, which may be longer than usual. As an independent business valuator, you can also set your own fees, whereas with a firm you will receive a set salary. Your earnings may be lower at first, but eventually they will be higher than average.
You can obtain certification as a business valuator to show your clients that you have the skills and abilities required in this job. The American Institute of Certified Public Accountants administer this certification, called the ABA. It requires additional course work and a passing score on a comprehensive exam.
