In today’s business environment, clients are looking for cost-effective solutions for their financial reporting needs. In many situations, assurance based financial statements are not necessary as the cost outweighs the benefit. We are experienced in discussing these needs with your lender and other financial statement users to help you negotiate the most cost-efficient solution.
While most of our clients perceive the greatest value in compilation engagements, we offer both review assurance engagements as well as assisting clients in preparing their own internal financial statements in accordance with professional standards.
As the owner of a business you instinctively understand that your success is dependent on having sufficient cash flow and access to financing. Unfortunately, for businesses without an established track record, the sources of this financing is often hard to come by and leads to a great deal of stress and frustration. What can you do when you know what steps you need to undertake to reach your goals but the bank is not willing to cooperate?
We can provide assistance in this area by not only preparing the necessary business plan and related documentation, but by presenting your file to our own banking network representatives with the goal of enabling you to leverage the credibility we have built. The lenders we work with know that once we accept a client for a financing proposal, that we will actively support the owners in managing their business. This support is seen by the bank as in a positive light and may be the catalyst for determining the admissibility of the file.
As a CPA we often prepare financial statements.
Financial statements can be accompanied by different reports signed by the CPA.
A Review engagement allows for a report that provides a certain level of assurance that the financial statements are not materially misstated. This level of assurance is often requested by lenders and banks when the debt surpasses a certain threshhold.
A Compilation engagement is a report that requires less validation yet is still recognized by banks as having a certain level of comfort as a CPA is involved in the preparation of the financial statements to a certain extent.
Both reports have their place and we will help you decide which is best for you depending on your needs.
Internal financials statements are prepared by the client. We will recommend adjustments in the accounting to reflect certain best practices in the industry but ultlimately YOU the client decide on the presentation.
Clients who do not have debt on their balance sheet and only require the preparation of corporate tax returns regularly are ideally suited for this.
A cash flow is a representation of the flow of money in and out of your company.
Clients often comment that sales are up but they never seem to have enough money in their bank accourt.
We can help demystify why thorught the preparation of this very important statement.
We often prepare financial projections when a client is looking to expand their business or in situations where a new business venture is being entered into and the client needs fianancing.
We can not only crunch the numbers for the future growth but also review the hypotheses on which these projections are based to ensure they are consistent with the industry growth stats and your business model.
Banks and lenders often request that a CPA present these projections as they know we are trained to consider the variables that can ultimately impact the ability of the companyg to service debt while generating a profit.