Many small-to-midsize businesses lack the resources to hire all of the personnel they require to run their organizations properly and effectively. Perhaps your company is one of them. If so, you may be using an accounting clerk or, perhaps, a young and inexperienced accountant (a modestly-paid recent college graduate) to perform month-end closings and to generate monthly, quarterly and annual financial statements that adhere to the US GAAP.
Perhaps you actually outsource this critically important accounting altogether because you don’t have the necessary software and you lack faith in your young employees. Outsourcing is, in fact, common for smaller firms. And it is necessary if you lack the appropriate in-house resources because you have a vested interest in knowing exactly how your business is performing financially.
You need to receive financial information such as balance sheets … income statements … cash flow statements and a statement of retained earnings – regularly – in order to stay on top of your business and run it effectively. A Balance Sheet, for example, will enable you to know, at a glance, what assets you own, how much is owed to your creditors and how much is invested in your company.
An Income Statement will show you your cost of sales and whether or not your firm is turning a profit. You can look at a Cash Flow Statement and quickly determine where you are spending cash … and if you are spending it wisely. Finally, you need a Statement of Retained Earnings to see how your equity in the firm is changing over time. Remember: it doesn’t remain static.
Clearly, these financial statements are absolutely necessary for any business that wants to succeed. In fact, it’s fair to say that no business owner can successfully run a company without periodically looking at Financial Statements and making judgments and business decisions based on them. They are essential to your firm’s survival and your ability to prosper.
So if your company is one that outsources accounting, you may want to consider Davidoff & Associates to produce Financial Statements for you. You’ll get much more from us than you are likely to receive from other professional accounting firms. For one, we will prepare the statements accurately and in a timely fashion. And then … we’ll meet with you to highlight trends and problems that may be affecting your business. And, if you ask, we’ll even prepare management presentations for your Board meetings.
Consider Davidoff & Associates for your Financial Statement preparation. You can start by contacting us today.