As a business owner, you may need financial statements prepared for a third party, such as a bank or a bonding company. This often occurs when applying for financing or applying for a bond for a contract. A business owner needs to learn how to use their financials to help make their business as profitable as possible. We can assist with the preparation of financial statements for whatever purpose.
We can prepare Compiled financial statements which are often satisfactory for most loan applications. Sometimes the financing source will require additional disclosures known as footnotes; we can prepare those as well.
Very often for annual financial statements, when significant borrowing is involved or for bonding companies, Reviewed financial statements are required. When we prepare reviewed financial statements, we have to perform analytical procedures which help us evaluate the financial statements. We also have to make inquiries and obtain written representations from the client. Accordingly, we provide more assurance to the third party reader as to the propriety of the financial statements that have been reviewed.
There are other less involved financial statements we can prepare. We can also prepare Personal Financial statements if necessary.
Beyond what is required by third parties, understanding financial statements are critical for a business owner to have as profitable a business as possible. We can help business owners understand their financial statements and also reformat them so the financials make more sense to them.
We can show them how to look for problems on the company’s Balance Sheet. We can show them how a Comparative Profit and Loss Statement can help them control expenses. We can prepare a Cash Flow Statement to show what is impacting cash flow and how to adjust accordingly.
© 2017 James L. Falgout, P.C.