What are the accounting, tax and finance issues in this case?

Scarborough Economic Development Corporation (SEDC), a local community-development office, operates a program called Business Assistance Service (BAS). It is a mentorship service for entrepreneurs. SEDC forms volunteer advisory boards of three to five knowledgeable business people with strengths in different areas. The advisory boards are paired up with businesses requesting BAS. The service is available to businesses within two to five years of inception and can be provided for up to five years. The volunteers meet with the entrepreneurs on a regular basis and critique the business and offer suggestions for improvement. All aspects of the business are considered: financial accounting, operational, strategic, marketing, finance, tax, and human resources. You are a CPA with Yee and Lee, Chartered Professional Accountants. On July 30, 2020, you had your semi-annual performance review with your partner, Tom White. Tom noted that the firm values community service and thinks that, now that your studying is over, you should do more of it. As a result, you volunteered to become involved as a mentor with BAS. Tom thinks this will help you expand your business knowledge, and make useful contacts with fellow volunteers and with budding entrepreneurs that could become valuable clients. He said to come see him if you need help. On August 5, you met with the volunteer board that you were assigned to. Your board has three other members: a lawyer, a marketing professor, and a successful small-business owner. Your first "client," Startec Protection Inc. (SP), operates a security business and is new to the BAS program. The volunteer board met briefly and was given some information from a meeting the account manager at SEDC had with David O'Connor, the owner of SP (Exhibit I) and some background information from SP's application to the BAS program (Exhibits II, III, and IV). You are responsible for advising on the accounting, tax, and finance aspects of the business. This is important given that SEDC requires the financial statements to be in accordance with GAAP. The other volunteers will look at marketing, human resources, strategic, and operational issues. However, you are welcome to contribute your views on these other areas. The volunteers will get together for a group discussion before meeting with the client. You decide to consult with your partner on how to proceed. He suggests you draft a memo summarizing your observations for the upcoming meeting.