Financial Statement Preparation in Morrisville

Financial statements summarize business activities and usually include a balance sheet, cash flow statement, income statement, and shareholders equity statement. At Steward Ingram & Cooper, PLLC, we have been preparing financial statements for businesses in Morrisville and the greater Research Triangle Park area since 2000.

We primarily work with service-based clients, such as medical practices, engineering firms, and law firms to provide accurate financial statements that keep business records and prove helpful during tax filing season. To learn more about our services or to inquire about our capacity to take on new clients, call  (919) 872-0866 or fill out the form below.

What Financial Statements Preparation Involves

At Steward Ingram & Cooper, PLLC, we turn your accounting records into formal financial statements following GAAP. Since accurate bookkeeping is a prerequisite for accurate financial statements, we work with our clients on a monthly basis to organize and record all business transactions. That way, when you request a financial statement or are ready to file your taxes, the process is much more straightforward.

We categorize your business transactions, work with you to reconcile your bank statements, loans, and payroll accounts, as applicable to your business. We then confirm debits equal credits and review statements as needed to ensure accuracy. The next step is posting adjusting entries for any prepaid, accrued, or deferred expenses. Then, we are able to generate your financial statement and compare it against prior periods, giving you a clearer insight to your finances. We can do this monthly, quarterly, or annually, depending on your needs.

Records That Go Into Financial Statement Preparation

Income Statement

Your income statement, better known as a profit and loss statement, shows revenues, expenses, gains, and losses over a set period (i.e. month, quarter, year). The income statement is the first component we look at when considering your financial statement preparation.

Balance Sheet

A snapshot of your company’s financial position at a specific point in time. In other words, what does your business own, owes, and what is the equity left for the owners right now?

Cash Flow Statement

Your cash flow statement shows liquid cash movement in and out of your business over a set period of time. We look at cash from daily operations, investments, and bought or sold assets, dividends paid, and stock bought.

Statement of Owners’ Equity

We’ll see how the value of ownership has changed in your business over a set period of time. Your CPA will review beginning equity, owner contributions, net income or net loss, and cash withdraws and distributions to calculate ending equity.

Financial Statements for Morrisville Businesses

The four statements that go into creating your financial statement are generally the same for every business, but the records we need depends on the industry. Below are a few examples of what your CPA may need based on the businesses we work with:

• Medical and dental practices: Your CPA will look closely at your accounts receivable, insurance versus patient collections, and equipment depreciation.
• Engineering firms: By providing labor costs, active project billings, work-in-progress (WIP) schedules, accounts receivable and payable, and details on equipment or debt, your CPA will be able to generate your financial statement.
• Law firms: For law firms, we will review your general ledger, accounts receivable and aging reports, WIP summaries, trusts and IOLTA accounts (ensuring compliance and separate of expenses), and payroll expense records to create your financial statement.

• Restaurants: To create an accurate financial statement, your CPA will need your cost of goods sold (COGS), daily sales report, payroll, sales data, accounts receivable and payable, and operating expenses to name a few.
• Construction and home service companies: We’ll take a close look at job costs, any loans you have taken out, and your work in progress schedule before generating your financial statement.

You don’t have to guess which document your CPA will need as your accountant will work with you to compile and organize those documents in your first meeting.

Why Your Business May Need Financial Statements

Generally, no law requires a privately owned North Carolina business to prepare financial statements. In practice, most businesses need them for the following reasons:

• Lenders ask for them with loan applications, and loan agreements may require periodic updates.
• Investors, partners, and buyers use them to evaluate the business, and operating or shareholder agreements may require regular reporting.
• Bonding and insurance companies may request them, particularly from contractors.
• Your CPA uses them at tax time. A return built from reconciled, year-round statements takes less time and leaves fewer open questions than one reconstructed from bank statements after the year closes.

Compilation, Review, and Audits

At Steward Ingram, and Cooper, PLLC, we provide three types of financial statement preparation. You can choose what you want based on your business needs or what your lender, investor, or agreement requires.

A compilation is the most basic form and involves putting your financial data into statements. The next level is a review where your CPA applies inquiry and analytical procedures with limited assurance. The highest level of assurance is an audit with independent testing of balances and internal controls.

How Much Does Financial Statement Preparation Cost?

Fees depend on the number of transactions and accounts, the condition of your general ledger, how often you report, and the level of service. There is no minimum monthly fee for our month-to-month accounting work, and fees follow the amount of activity in your books. A restaurant with a high volume of transactions, for example, may see fees upward of $800 per month.

*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.

Request Our Financial Statement Preparation Services

We match each client with the CPAs who fit the work, and we start with a conversation about your records, your reporting needs, and who will be reading the statements. If your books need cleanup first, our bookkeeping services can get them ready for reliable financial reporting. To learn more about our Morrisville financial statement preparation services, call  (919) 872-0866 or fill out the form below to get started. We work with clients in-person and virtually to meet your business needs with ease.