11-10-10 Using and Understanding your Financial Statements

Using and Understanding your Financial Statements

Many of our clients have asked us to help them not only with their tax compliance needs, but also with their financial reporting needs. With this in mind, we have initiated a program to prepare monthly or quarterly compiled financial statements for our commercial clients. The compiled financial statement work would include the following:

• Detailed review of your Balance Sheet report for the applicable period, making sure your accounts tie out to the tax return that was filed, that all accounts are reconciled and reasonable and any adjustments that may be needed are made.

• Review of your Profit and Loss report for the applicable period for reasonableness and making any adjustments that may be needed.

• Provide all adjustments we have made back to you so that you can update your accounting records at your office as well as a Trial Balance to tie out to so that you know everything matches up to the work we completed.

The benefit of receiving ongoing financial reports are many, here are a couple of examples:

• Good ongoing financial information that you can use to help manage you business throughout the year.

• Tax return preparation can often be completed within the next month or two after the close of the year since the books are kept up to date.

• At least a 10% reduction on the fee to prepare your commercial tax returns.

In addition to receiving the financial statements, we are pleased to offer additional information and analysis of your financial statements that you should find useful in the management of your business. This data provides you with a plain language translation of the reports. We have provided a sample report for your review along with this letter. The analysis provides businesses with information such as:

• Highlight areas of your business that are the strongest.

• Information on what areas may need improvement.

• What are your financial ratios and what do they mean?

• How has your business been changing from prior periods?

• How does your business compare with similar businesses in your same industry and size in the Pacific Northwest?

If you have an interest in these services, please let us know and we can provide you with a written quote.

 
 
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