Steward Ingram & Cooper, PLLC provides financial statement preparation in Durham, NC to help businesses maintain accurate financial reporting, understand their financial position, and support informed decision making. Our services are tailored to your business and designed to meet both internal and external reporting needs.
The Importance of Financial Statement Preparation
Financial statement preparation is the process of organizing your company’s financial data into structured reports over a specific reporting period. This process follows established accounting principles and typically includes reviewing transactions, reconciling accounts, and summarizing financial information into formal financial statements.
Depending on your needs, financial statements may be prepared monthly, quarterly, or annually.
What Financial Statements Does Your Business Need?
Most Durham businesses rely on four core financial statements to understand their company’s financial health and performance:
Income Statement
The income statement (also called a profit and loss statement) shows your revenue, expenses, and net income over a specific period. It helps you evaluate profitability, track operating expenses, and understand where your business is generating or losing money.
Balance Sheet
The balance sheet provides a snapshot of your company’s financial position at a specific point in time. It outlines your assets, liabilities, and shareholders equity, helping you understand what your company owns and owes.
Cash Flow Statement
The cash flow statement tracks cash flows into and out of your business. It is divided into operating activities, investing activities, and financing activities, giving insight into how your business generates and uses cash.
Statement of Shareholders’ Equity
This statement shows changes in ownership equity, including retained earnings and distributions. It helps explain how profits are reinvested into the business over time.
Accurate Financial Statement Support
Accurate financial statements support:
- Better decision making based on reliable financial data
- Clear visibility into your company’s financial health and performance
- Improved ability to secure loans or attract investors
- More effective planning for growth, hiring, and expenses
Inaccurate financial reporting can lead to poor decisions, missed financing opportunities, and time-consuming corrections.
Financial Statement Requirements in North Carolina
North Carolina businesses are generally expected to maintain accurate financial records and prepare financial statements that align with recognized accounting standards.
Depending on your situation, financial statements may be required for:
- Loan applications
- Investor reporting
- Income tax filings
- Internal financial management
Requirements can vary based on your entity type, industry, and financial complexity. A CPA can help determine the appropriate level of reporting and ensure your financial statements follow applicable professional standards.
Real-World Durham Business Scenarios
Securing Financing
A Durham contractor preparing for expansion may need updated financial statements to demonstrate consistent revenue and stable cash flows when applying for financing.
Managing Growth
A professional services firm may use financial statement analysis to evaluate net income trends, monitor expenses, and determine whether hiring additional employees is financially sustainable.
Handling Seasonal Cash Flow
A retail business in Durham may rely on its cash flow statement to plan for seasonal fluctuations and ensure sufficient cash is available during slower periods.
How Much Does Financial Statement Preparation Cost?
Costs vary depending on your business size, record quality, and reporting needs.
Business tax returns: starting at $1,750*
*Steward Ingram & Cooper, PLLC reserves the right to charge additional fees based on your unique tax situation if your circumstances are complex and require additional time for preparation, analysis, or planning.
Financial statement preparation fees may vary based on:
- Number of transactions and accounts
- Condition of your general ledger
- Frequency of reporting (monthly, quarterly, annual)
- Level of service (compilation, review, or audit)
Can You Prepare Your Own Financial Statements?
Some business owners use accounting software to prepare their own financial statements. However, without a clear understanding of accounting principles and the accounting cycle, errors can occur.
Working with a CPA can help improve accuracy, ensure consistency, and provide deeper insight into your financial performance.
Do You Need a CPA for Financial Statement Preparation?
You are not required to be a CPA to prepare internal financial statements. However, certain services—such as audits or reviews—must be performed by a licensed CPA.
Even when not required, many businesses choose to work with a CPA to improve reliability and credibility when sharing financial statements with lenders or investors.
Common Issues in Financial Statement Preparation
Businesses often encounter challenges such as:
- Incomplete or inconsistent financial data
- Misclassified assets or liabilities
- Unreconciled accounts
- Missing disclosures or unclear accounting policies
These issues can affect your company’s financial position and lead to inaccurate reporting.
Work With Our Durham CPA Firm
Steward Ingram & Cooper, PLLC has worked with businesses in Durham and surrounding areas since 2000, providing financial statement preparation and financial reporting services tailored to each client’s needs.
Because every business is different, our recommendations depend on your specific financial situation, reporting requirements, and long-term goals. We encourage you to contact our Durham CPAs to discuss your needs and determine the best approach for your financial statements.
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.