Financial Statement Preparation
Preparation of your business’s financial statements is a key aspect of your accounting process. Your financial statements should tell the story of your business. There are many readers of financial statements, including banks, loan underwriters, shareholders, owners and management. We want to ensure that these documents are created with accuracy and meaningfulness. The staff at Fuller Lowenberg & Co. possesses the expertise to produce an accurate and compliant financial statement geared toward the user of the financial statement. With years of trustworthiness, banks and other users have come to rely on our financials for their integrity and reliability.
There are three common types of financial statements that most businesses require:
Compilation of Financial Statements – The Compilation service is a function in which an accountant prepares or assists in preparing basic financial statements. It is done without undertaking or expressing any assurance on the financial statements that they are completed and in conformity with generally accepted accounting procedures.
Review of Financial Statements – A higher level of service than a Compilation, it is here that the accountant expresses limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. During a Review, the accountants perform inquires of management and perform analytical procedures on the financial statements.
Audit of Financial Statements – The highest level of assurance expressed by the accountant’s report. The function of the audit is to express an opinion that the financial statements are presented fairly, in all material respects, of the financial position of the entity. During an audit, the auditor tests and examines transactions and confirms the data with third parties. The audit process also includes increasing our understanding of your accounting systems and your internal controls to determine the overall scope of testing and reliability.
Financial Statement Analysis
Understanding the financial strengths and weaknesses of your business can help guide your decision making while growing your business in the future. Among the various methods and techniques utilized to analyze your financial data are comparisons, changes in percentages, trend analysis and ratio analysis. Knowing the financial health of your business is like knowing your personal credit score so that all decisions made going forward ensure continued financial stability.
Financial Forecasts and Cash Flow Projections
Forecasting uses an estimate of financial outcomes, trends, historic data, industry conditions, as well as and political environments to predict the future of a business activity. By understanding how all of these variables may affect your business, you are able to make decisions about both current and long-term needs to ensure business continuity. Good forecasting can help grow your business and assist in the many managerial decisions to be made.
If your business has a large employee benefit plan as defined by the IRS and ERISA, audits must be performed on an annual basis. Fuller Lowenberg & Co. can help assess your company’s filing requirements and perform DOL Limited-Scope audits to comply with these regulations. Our experienced professionals can guide you through every stage of your employee benefit plan audit.
According to the Department of Labor, a quality audit will help to carry out your legal responsibility to file a complete and accurate annual return/report for your plan each year. Because an incomplete, inadequate, or untimely audit report may result in penalties being assessed against you as the plan’s administrator, selection of an experienced and reliable auditor is very important.
Our Employee Benefit Plan Audit Team regularly receives additional education and training within the employee benefit plan arena. The combination of experience and ongoing education allows team members to work efficiently, while focusing on providing value for the client’s investment. To demonstrate our commitment, we have joined the American Institute of Certified Public Accountants’ (AICPA) Employee Benefit Plan Audit Quality Center and regularly have our work reviewed through the AICPA Peer Review Program to ensure compliance with audit regulations.
Acquisitions and Sales of Business
Purchasing or selling a business can be a very daunting task that extends beyond the basic principles of buying or selling. Should the transaction be structured as an asset or stock sale? Should it be an installment sale? Should a corporate reorganization or a bulk sale be considered? These are just a few of the many areas that must be explored along with the proper due diligence work that must be performed in order to properly structure your transaction. We can help to guide you through these difficult areas.