Crowd Funding (JOBS ACTS) passed...now what?

The JOBS act allows entrepreneurs to raise capital for start up and small companies through crowd funding online. However, regulations will not be implemented until January 2013. The Securities and Exchange Commission (“SEC”) has 270 days to figure out how to regulate funding which targets non-accredited investors.  The following is a partial list of the items in which you can do to get ahead while waiting for the law to be implemented:• Incorporate you business;• Start writing your business plan, or refining it, if you already have one. This will assist you determine the amounts of financing you are looking to raise. In addition, a well thought out business plan outlining your current and future business expectations will alleviate many questions in which may arise during a due diligence process;• Get you accounting records complete and accurate. Good accounting will benefit you when attempting to present the viability and growth of your business. Being able to provide reliable information on a timely basis will provide additional credibility or your organization. If you plan on raising funds under $100,000, the officer of the company needs to certify the financial statements and state they are accurate. So you will want to ensure the records are adequately prepared to prevent any legal issues;• Get your CPA, consultant and/or accountant involved to assist in the process.   If you plan on raising $100,000 -$499,000, then you need to have the financial statements reviewed by an independent public accountant. Any funding over $500,000 requires audited financial statements. It is never too early to get this process started. A first time audit/review can take any where from 30 – 60 days depending on the size of the organization.If you have questions in connection with crowdfunding or would like to gain additional information regarding this topic. Please contact BizCFO at one of its three offices located in Southern California or via email. BizCFO employs consultants that have a background in SEC reporting companies to ensure your information is compliant and within standards accepted in the United States.  In addition, we have connections with many CPA firms that can provide audits or reviews and can make introductions and request competitive bids.