E-mail: info@jphcpa.com
|
|
|
E-mail: info@jphcpa.com |
|
|
|
In the financial World, most people or business owners/manager don't understand the different degree of financial statements that are available to them. Typically banks and others including investors and business owners want financial reports that they can rely on to explain how their finances have been and are being managed. We offer three different levels of financial statements that we can prepare for you that will meet any purpose that you may have for obtaining financial statements. First, and probably foremost, we offer Audited Financial Statements. Audited financial statements offer a very high level of confidence about your company's financial performance and profitability; which may be required by Banks, the SEC, or other Governmental agencies. To prepare these financial statements, we follow very strict accounting and auditing proceeds that the American Institute of Certified Public Accountants (AICPA) has promulgated and we use Generally Accepted Auditing Standards in the performance of our services and in the attestation process. The second form of financial statements is considered a Reviewed Financial Statement. These financial statements are prepared with a lower threshold of attestation services than are Audited Financial Statements, and we follow another set of very strict accounting and auditing proceeds that the American Institute of Certified Public Accountants (AICPA) has promulgated under Standards Accounting and Review Services. The level of work performed for these financial statements is not as complex or detailed as the Audited Financial Statements, but they do involve some attestation work. The third form of financial statements is considered a Compilation Report. These financial statements are prepared with due professional care. More importantly, we can help you use these statements, as well as other reports, to better manage your business and increase your profitability. Good financial records are necessary for several reasons:
Prepare financial reports monthly. For year-to-date comparisons and to make quick management decisions, financial reports must be done monthly. "As goes the month, so goes the year." You can compare the sales, gross profit, and net profit at, say, the end of May, with prior years and get a good idea of how the current year will finish. You can compare the total accounts receivable or payables with prior years to spot problems and then quickly take corrective action. Here are some common business ratios you should monitor on a month-by-month and a year-by-year basis:
Understanding financial statements can increase business profits. If you would like to learn more about using financial statements to make sound business decisions, we would be happy to assist you. No one was born understanding financial information, but it is easier to learn than most people think. Please ask as many
questions as you like; we will help you until you are comfortable with business
numbers and can use yours to increase your profitability.
|
|||||||||||||||||||||||||||||||
| © copyright |
