FINANCIAL STATEMENT REPORTING
IN SIOUX FALLS, SD
Susan CPA services provides timely and accurate financial statement reporting Sioux Falls, SD. These are an essential collection of reports about an organization’s financial results, financial condition, and CASH FLOWS among other critical business performance indicators. Susan CPA can help you evaluate which type of financial reports is right for you and provide you with the appropriate financial statements in Sioux Falls, SD. These reports are useful for the following reasons:
To determine the ability of a business to generate cash, and the sources and uses of that cash.
To determine whether a business has the capability to pay back its debts.
To track financial results on a trend line to spot any looming profitability issues.
To derive financial ratios from the statements that can indicate the condition of the business.
To investigate the details of certain business transactions, as outlined in the disclosures that accompany the statements.
If a business plans to issue financial statements to outside users (such as investors or lenders), the financial statements should be formatted in accordance with GAAP. If financial statements are issued strictly for internal use, there are no guidelines, other than common usage, for how the statements are to be presented.
Compilations
The objective of a compilation engagement is to apply accounting and financial reporting expertise to assist you in the presentation of your financial statements. Compilation engagements do not provide any assurance that there are no material modifications that should be made to the financial statements.
Banks often require compilations from an Independent CPA as part of their lending covenants.
Reviews
Reviews provide limited assurance to outside interests (banks or investors) as to whether I am aware of any material modifications that should be made to your financial statements. This type of engagement includes primarily applying analytical procedures to your financial data and making inquiries of management. It is substantially less in scope than an audit engagement, but it is performed to ensure the integrity of your data.
A review is typically appropriate for more complex levels of financing and credit or it may be required from a regulatory agency or for bonding. It is a good middle ground – above the level of no assurance offered by a compilation but without the work and expense of an audit.
Which report should you use?
I can help you evaluate which type of report is right for you and provide you with the appropriate financial statements. Contact me for a Free Consultation.