Why Should a CPA Draft Your Statements?Posted on September 18th, 2017
Financial statements are cornerstone documents for every business’ bookkeeping functions. While many small business owners try to draft these statements themselves, they could outsource this task to a CPA. Having a certified public accountant prepare your financial statements gives you several advantages over trying to write up your own documents.
Though they can provide insight into your company’s performance and standing, your financial statements are for more than your use as a business owner. Before establishing a lending agreement or to fulfill existing loan covenants, the financial institution you’re working with will often want an audit or review, respectively, of your statements. Similarly, a yearly audit is required of businesses that conduct services within particular industries, attempt to gain a government contract, or are publicly traded.
A financial statement drafted by a CPA more easily meets the level of assurance needed by those performing the audit or review as well as the financial institution who requested the attestation service. With the expertise of a CPA behind these documents, you have an authoritative declaration that demonstrates to outside parties your ability to operate a business effectively. It also enables you to uncover any areas of improvement that may have otherwise been missed.
Inherent Understanding of the Documents
The financial expertise of a certified public accountant is beneficial beyond establishing the veracity of your records. A CPA understands what each statement needs to document for use as a depiction of your company’s current standing and capture what lending institutions or regulatory agencies are looking for during an attestation engagement. As such, the financial statements drafted by a CPA tend to be more accurate than those drafted without expert assistance. Your chances of having a successful audit or review process increase significantly when an accountant performs the write-up services.
Many businesses use QuickBooks® to balance their books. This accounting software has various plugins and reporting tools to help enterprises quickly gather the information needed for financial statement drafting. However, while convenient, QuickBooks also has its share of operational intricacies; successfully gathering accurate financial data can be challenging for owners or members of the management team who are new to the software or using its compilation features for the first time.
Our CPA firm in particular is well-versed in helping our clients get the most out of QuickBooks. In hiring our team for financial statement services, we can confirm that the data behind your records are accurate and show you how to compile that information in the future.
Contact Us for Write-Up Services
TBS Tax provides financial statement drafting in Burke, Springfield, Fairfax, and the surrounding communities. Preparing these documents for our clients is one of many ways we make sure they have access to accurate bookkeeping records. For more information, call our firm and schedule a free consultation today.