Financial Statement Preparation and Accounting Services

Compiled Financial Statements

As a business owner you need to have current financial information so that you can make informed decisions about your business.  Further, creditors and investors often require compiled financial statements from an independent CPA as part of their lending covenants or investing requirements. While your bookkeeper records the day to day business transactions, as your accountant and business advisor we will make sense of all this information by compiling it into useful reports, then sit down with you to analyze the results.

Each month or quarter we'll perform the following things for you...

Compiled financial statements (also called a "compilation") is a service to assist the management of a business in presenting its financial statements. In compiling financial statements, we present your financial information without expressing an opinion or assurance on the statements.

A compilation is the least expensive of the various forms of attest services (the other two being a review and an audit), and so is preferred by those businesses whose financial statement users are comfortable with this type of report.

Unlimited Consultations

We will meet with you whenever we compile your financial statements so you fully understand how to interpret and utilize the financial information. Plus we are always available for phone calls and meetings about other issues or concerns you have. 

If you are contemplating a complex or unique business transaction, are unsure about a business issue, or would just like to discuss or "run" the issue by someone to get their thoughts, please give us a call.  Unlimited consultations, phone calls and meetings are already included in our price, so please feel free to call us whenever you have a question or concern.  If your question or issue requires additional research and analysis beyond the consultation, we will be happy to perform the additional work, and will discuss the estimated price of the additional work before we start.

Statement of Cash Flows

A wise business owner once said, "Happiness is a positive cash flow." As a business owner, I'm sure you agree. Everything is better when your cash-in exceeds your cash-out.  A statement of cash flows provides information about your business's cash receipts and cash payments during a period. 

A Statement of Cash Flows allows you to assess:

  • The business's ability to generate future cash flows.
  • The business's ability to meet obligations and make distributions to owners.
  • The reasons for the difference between net income and net cash flow.

The statement of cash flows classifies cash receipts and cash payments by operating, investing, and financing activities.

  • Operating Activities involve the cash effects of transactions that enter into the determination of net income, such as cash receipts from sales of goods and services and cash payments to suppliers and employees for acquisitions of inventory and expenses.
  • Investing Activities generally involve long-term assets and include (a) making and collecting loans, and (b) acquiring and disposing of investments and productive long-lived assets.
  • Financing Activities involve liability and owners' equity items and include (a) obtaining cash from creditors and repaying the amounts borrowed, and (b) obtaining capital from owners and providing them with a return on, and a return of, their investment.
Income Statement

An income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.

An income statement allows you to...

  • Track revenues and expenses so that you can determine the operating performance of your business.
  • Determine what areas of your business are over-budget or under-budget.
  • Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.
  • Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
  • Determine your income tax liability.

Balance Sheet

A balance sheet gives you a snapshot of your business' financial condition at a specific moment in time.

A balance sheet helps you:

  • quickly get a handle on the financial strength and capabilities of your business

  • identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively

  • determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses

  • determine if you need to take immediate steps to bolster cash reserves

  • determine if your business has been slowing down payables to forestall an inevitable cash shortage

Balance sheets, along with income statements and statement of cash flows, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

Maintaining a Clean General Ledger

The general ledger is the core of your company's financial records. These records constitute the central "books" of your system. Every transaction flows through the general ledger.  After we compile your financial statements, we will make recomendations for adjustment to you general ledger.