Financial statements serve as records outlining the financial activities of a company or individual. They are used to apply for loans, track the financial health of a company, and for a number of other reasons. Accurate financial statement preparation must be made by real professionals.
The financial statements for business purposes usually include some of the following:
- income statements
- statements of retained earnings and cash flows
- balance sheets
Businesses usually present financial statements that adhere to generally accepted accounting principles (GAAP). Financial statements are typically audited by accountants, auditing companies, and government agencies, in order to ensure accuracy.
Financial Statement Preparation Services
If you are in the market for the services of a professional accountant, here are 5 tips on how to find the right accountant for financial statement preparation.
- The best way to find a good accountant is to receive a trusted referral. You can ask for one from your banker, attorney, or a business colleague. It is a good idea also to check for information in the Society of Certified Public Accountants in your state. The CPAs (certified public accountants) often work for both large and small businesses. Generally, you can be sure about the competence of such an accountant. You can also look for a licensed Enrolled Agent (EA). In either case, make sure the referral is an appropriately licensed and experienced professional in accounting and bookkeeping.
Once the company has chosen a few suitable candidates for financial statement preparation, it has to be decided whether the accountant will be given other tasks. There are three wide categories of accounting services. The work of the accountant might be either restricted only to financial statement preparation services or to include tasks form the other categories.
- The next step is an interview all the candidates. You may need two meetings with the accountants – one at your site and one at theirs. This can help you see how they work and communicate with you and how their office operates.
- When interviewing the accountant, one should find out whether this specialist’s style is compatible with yours. For the right evaluation of competency and compatibility, the candidates should be asked how they would handle situations relevant to your business.
- The information on the fee of the accountant for financial statement preparation and others is quite important. Most of the accounting companies charge per hour. Others have a monthly retainer. The type and the amount of the fee should be carefully researched.
Still, the decision should not be based only on the cost. An accountant who charges higher is probably more experienced and able to work better and faster than an inexperienced accountant, who would charge less.
- References for the work of this accountant should be asked. This gives valuable information whether this accountant is a real professional.
Finding the right accountant for financial statement preparation services is not easy but can be done in a few simple steps. A trusted and reliable specialist or company should be chosen to care for the financial dealings of the company.