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The Importance of Financial Statements and Related Services

Financial Statements

Financial statements, whether annual or periodic, are a crucial part of any organization's financial management. They are often required to meet banking, bonding, governmental, regulatory, or operating agreement requirements. However, beyond fulfilling these necessary obligations, financial statements and their analysis are essential tools for making critical business decisions. 


Our team is professionally trained to provide these services from a business perspective. We collaborate with you to scrutinize the numbers, pinpoint issues that impact your company's profitability or financial stability, and offer solutions. Our services are not limited to financial statement analysis; we also provide audits, reviews, compilations, and various specialized reports. 


The Value of Audits, Reviews, and Compilations


We will work with you and your financial partners, such as bankers and bonding companies, to determine the level of service that will add value to all parties involved. 


An audit of your organization's financial statements aims to ensure that the statements are free from material misstatement. We conduct detailed testing and analysis of your financial records to reach this conclusion. Audits are often requested by regulatory agencies, outside investors, or creditors.


Reviews involve inquiries of company personnel and analytical procedures applied to financial data. The scope of a review is less extensive than an audit, with no detailed account or transaction testing. The review report indicates that we are not aware of any material modifications required for the financial statements to conform with generally accepted accounting principles.


A compilation of financial statements involves assembling financial records to present the company's financial state in accordance with comprehensive accounting principles. The financial statements can have full disclosure (i.e., with footnotes) or omitted disclosure (i.e., without footnotes). No account testing or analytical review is performed in a compilation.


Specialized Auditing Services


In addition to financial statement audits, we offer specialized audits for non-profit and governmental organizations, employee benefit plans, and compliance audits. 


Non-profit and governmental audits assure that the organization complies with specific governmental or non-profit audit requirements. 


Employee Benefit Plan Audits are required by federal law for plans with 100 or more participants as part of their obligation to file an annual return/report Form 5500 with the Department of Labor. 


Compliance audits provide assurance of an organization's accordance with a set of rules or regulations. 


Agreed Upon Procedures are engagements where we agree on the procedures to be performed on the client's financial or non-financial records. The objective is to determine if specific balance sheet accounts are correctly stated or if specific procedures or compliance items are being followed.


Prospective Financial Statements are predictions of future financial status based on a fixed set of assumptions. We assist clients in developing the assumptions and preparing the financial statements for a bank or other credit agency.


Our Management Consulting service collaborates with you on any business issue to find the best solution. If we are unable to provide the solution, we will offer a list of consultants who have the necessary expertise.


In Projections, we assist in developing and documenting your business plan and the related financial projections for internal planning or loan applications.


Contact us to discuss how we can be of service in these areas. We look forward to helping you navigate the financial landscape, securing your organization's financial stability and growth.

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