When it comes to your financial health and stability, you want your financial statements to be in order. They can help to give an accurate look at your accounting over a set period of time. Steward Ingram & Cooper PLLC provides comprehensive financial statement preparation you can trust for your Durham business or non-profit organization.
Business Financial Statements
Business financial statements give you the information you need to plan for the future and make informed decisions. We provide up-to-date, accurate financial information to give you an in-depth look at the financial health of your company in Durham.
Do I Need Financial Statements?
Legally, privately owned companies are not required to disclose financial statements. However, there are three key reasons to have financial statements generated for your business:
1. Lenders require them to understand the financial health of your business.
2. They show investors and shareholders the worth of the company.
3. Provides you with in-depth data about your business to help inform you when to grow or scale back, what’s profitable and what is not, and have information ready for tax preparation.
How Often Should I Have Financial Statements Generated?
It is important for businesses to understand their financials in order to make informed decisions. The more frequently you review them, the better idea it will give about where your company stands financially and what needs attention now or later down the road!
How Long Should I Keep My Business’s Financial Statements?
Typically, any business document that verifies tax information should be kept for at least three years. This also helps you determine trends in your business and look for patterns that better help you plan, budget, and forecast in the future.
What Information Will I Learn from Financial Statements?
Each of the three main statements will provide you with different information:
1. The income statement shows whether or not your business was profitable during a specific time period. It can also show what is increasing your profits and what factors are taking away from them.
2. The balance sheet shows the net worth or equity you have in your business after all assets and liabilities are determined.
3. Cash flow shows how well you can meet your financial obligations and is one of the best indicators of a business’s financial health.
Can I Run Annual Statements?
Yes. Annual financial statements are a great way to see how your business has been performing over the course of one year. However, it’s important not just because you get more information but also due diligence should be done on an annual basis as well!
Can I Generate Financial Statements On My Own?
Yes. However, a CPA knows exactly how to lay out financial statements, understands what goes in them, and ensures better accuracy. They will also sit down with you and help you go through the analysis so you have greater clarity on your financial situation.
Nonprofit Financial Statements
Non-profit organizations can benefit from financial statements just as businesses can. They are necessary to provide board members and potential grantors with valuable information about the organization. But, financial statements are a bit different than those that businesses use. You can count on our Durham CPA firm to give you the analysis and data you need to clearly understand the financial health of your non-profit organization.
Am I Legally Required to Have Financial Statements for My Nonprofit Organization?
Financial statements are an important tool for nonprofit organizations, providing insight into the organization’s financial health and performance. While there is no legal requirement for nonprofit organizations to have financial statements, they are often required by donors, grantmakers, and other stakeholders.
Financial statements can also serve as helpful guides in decision-making and goal setting within the organization. It is important to note that while there is no legal requirement, some state or local regulations may require certain types of financial disclosures for nonprofits operating within their jurisdiction. In those cases, it is best to defer to the advice of a qualified accountant or lawyer. Nonprofit organizations are required to submit financial statements and other information with their Form 990.
Do My Financial Statements Need to Be Available to the Public?
Yes. By submitting these documents to the IRS on Form 990, the IRS will disclose the information to the public. At the same time, the nonprofit needs to make their records available for public inspection during regular business hours at their principal office.
Aside from Tax Information, Why Are Financial Statements Needed for a Nonprofit?
Your nonprofit’s financial statements show you the overall position of your organization and provide a clear picture on how revenue enters as well as where it’s spent. You can use this data for trend spotting, anticipating downturns in income or seeing areas that may seem higher than needed with spending; therefore investigating these issues is necessary before making any decisions about future plans!
Are Nonprofit Financial Statements the Same as For-profit Financial Statements.
They’re not identical, but there are similarities.
1. Statement of Financial Position is basically a balance sheet that shows the financial state of the organization after assets and liabilities are counted.
2. Statement of Activities is similar to an income statement as this shows the financial activity of your organization and the change in your assets after expenses are subtracted from revenue. It also shows where revenues and expenses are originating and can help you spot red flags.
3. Statement of Cash Flow is the same as a cash flow sheet for-profit businesses use, except cash flow is divided into operating, investing, and financing activities.
4. Statement of Functional Expenses is unique to nonprofits and shows expenses broken down by function. This shows donors how expenses are distributed.
What Happens If I Don’t Generate Financial Statements for My Nonprofit?
Your 990 tax form is usually based on the information in your annual report. If you don’t produce this document, it will be difficult to maintain exempt status with the IRS and provide accurate records of donations or other sources that fund our work as a non-profit organization.
Financial Statement Audit Services in Durham
We have experience providing audit services to businesses, nonprofits, and defined contribution retirement plans in Durham. In most cases, a third party will request an audit. An audit will be the most expensive financial document for the client because it is an in-depth look at all finances. As part of the audit process, we will look at internal controls, communicate with third parties, and test selected transactions.
Financial Statement Review Services
A review is less in scope compared to an audit but is more involved than a compilation. It provides limited assurance on financial statements. The process involves applying analytical procedures to the financial statements and making inquiries of management regarding a client’s financial statements. Financial review services are important because they assure your Durham business is working as efficiently as possible and following all regulations in the process.
Financial Statement Compilation Services in Durham
When looking at financial statement services, a compilation is the lowest level. These financial statements are compiled based on management’s representations in a format that fits the circumstances. No assurance is provided. A client may choose to have a complete set of footnotes in a compilation or omit all footnote disclosures substantially.
Why Choose Steward Ingram & Cooper PLLC
Our CPA firm uses Generally Accepted Accounting Principles (GAAP) to provide accurate financial statements. We are dedicated to supplying your Durham business or non-profit organization with the accurate financial statements you need. Our team can also meet with you to analyze and explain the data so you can fully understand the financial health of your organization. This allows you to make decisions and plan for the future.
We are here to generate and provide the documents and data needed to give you an in-depth financial analysis to board members and donors or to support a small business loan. You can count on Steward Ingram & Cooper for all of your financial statement services in Durham, NC.
Financial Statements: Frequently Asked Questions
What do financial statements include?
Financial statements are a way to paint an accurate picture of your company’s financial performance. They include balance sheets, income statements and cash flow statements that show how much money you’ve made or lost in each period.
What are business and nonprofit financial statements used for?
The financial statements of a nonprofit organization or business are used by investors, shareholders, market analysts, and creditors to evaluate a company’s financial health.
How long should I keep my personal financial records?
The IRS offers a number of different guidelines for how long you should keep your financial records.
As a general rule for personal finances, it’s best to keep your financial records for at least one year. Loan documents, credit card statements, and other contracts should be safely filed until the contract is fulfilled. Any annual investment statements should be kept until they are sold. Tax records should be kept on-hand for at least 7 years from the filing date. Receipts for large purchases such as property, vehicle titles, or real estate deeds should be stored for as long as the asset is in your possession.
How long should I keep my business’ financial records?
The IRS offers a number of different guidelines for how long you should keep your financial records.
A general rule of thumb for business owners and entrepreneurs is to keep financial records for at least 3 years. If you claim a credit or refund after you file a tax return, keep those records for 3 years after the date you filed the return. If you file a claim for securities or bad debt deduction, keep documentation for 7 years. If you have not yet paid taxes on income that you intend to report, keep those documents for 6 years. Keep all employment records for 4 years from the date that the tax is paid.