Ensure Compliance with Audited Financial Statements
There’s no denying how important financial statements are to any business, but audited financial statements are arguably even more important. Having detailed financial information at your fingertips is only beneficial if that information is accurate.
In order to ensure that your financial statements are correct, you should hire a professional Long Beach CPA to audit them. Not only will it ensure you make the right decisions for your business, but audited financial statements will also ensure that you’re on the right side of the IRS at tax time.
Audited financial statements can ensure the success of your business
Audited financial statements will give you the confidence you need to make important financial decisions for your business. They are extremely useful for many reasons that include:
- Identifying how a business generates cash and how it uses that cash
- Discovering if a business has the capability to pay back its debts
- Identifying any looming profitability issues
- Deriving financial ratios from statements that can indicate the condition of the business
- Investigating the details of certain business transactions, as outlined in each statement’s disclosure
An experienced auditor can make sure that the information that has been discovered and identified is absolutely correct so you can feel confident making important decisions about your company’s finances.
There are many people with an interest in the accuracy of a business’s financial reports. Not only are you interested in the financial future of your business, the bank that’s in charge of your loan, investors, stakeholders, and suppliers all want to be reassured that the information you have obtained in your reports is complete and accurate.
The best way to ensure accuracy is by auditing your financial statements. Audited financial statements have been diligently combed over by a professional, objective auditor whose only interest is in supplying you with factual information. That objectivity ensures that no stone is left unturned or unquestioned in the pursuit of perfectly accurate financial information.
Turn to an expert CPA
In order to ensure a proper audit of your financial information, it is absolutely essential for you to enlist the help of an expert CPA. A professional with years of experience in this area can make sure that the auditing process goes smoothly.
For expert audited financial statements, contact us today.
Audited financial statements FAQ
What is included in a financial statement?
When auditing a financial statement, a professional auditor will be looking for a few different things. A professional financial statement will include:
- A balance sheet that outlines the business’s assets, liabilities, and stockholders’ equity up to the report date. However, it is important to note that the balance sheet does not show information that covers a span of time, only information at one specific point in time.
- An income statement that shows the results of the business’s operations and financial activities for the entire reporting period. That statement can include revenues, expenses, gains, and losses.
- A statement of cash flow that outlines the changes in the business’s cash flow during the reporting period.
- Supplementary notes that include explanations of various activities, additional details on necessary accounts and other items, depending on the applicable accounting framework.
Are there different kinds of financial statements?
Although each financial statement includes some of the same types of information, there are quite a few different types of financial statements that can benefit from being audited:
- Comparative financial statements are essentially a complete set of financial statements. They can reveal information for more than one accounting period and can include income statements, balance sheets, and statements of cash flow.
- Consolidated financial statements represent a group of entities that are presented as being divisions or branches of a larger entity. They can be used to review the financial position and results of an entire group of commonly-owned businesses. Both the parent entity and subsidiaries are reported on.
- Pro forma financial statements incorporate hypothetical conditions about past events or possible future events, and they may or may not include a budget. They are used to present a view of corporate results to outsiders.
Make sure you visit with a professional accountant in order to determine what kinds of financial statements your business requires.
Can’t I just double check the financial statements myself?
If you want truly audited financial statements, you must hire a professional. Although you may be more familiar with the facts of your business, a tax accountant is well-versed in the latest rules and regulations. They have completed dozens, if not hundreds, of audits, so they are much more likely to identify any discrepancies or inaccuracies that you would likely overlook.
How often should you conduct financial statement audits?
Financial statements should be created and accompany your company’s annual report. Every time you create any financial statement, you should have it audited. If you have previous financial statements that haven’t been audited, you may want to consider having them audited as well. The audited information may cause you to rethink your tax planning and company’s past, present, and financial future.