Preparing the actual financial statements involves both the summarization of your accounts, as well as adherence to rules about what needs to be reported in the notes to the financial statements.
The technical requirements of financial statement preparation include rules promulgated by the Financial Accounting Standards Board (“FASB”), the United States Securities and Exchange Commission (“SEC”) and the American Institute of Certified Public Accountants (“AICPA”).
These various sets of rules and interpretations define what is required for both annual and quarterly financial statements.
Writing financial statements is a craft that requires many years of experience to master. There is certain language and formatting that regulators and users of financial statements are accustomed to seeing. Knowing how to disclose certain information is just as important as knowing what to disclose.
Properly preparing your financial statements saves time for the auditors as they review them for compliance with generally accepted accounting principles. We also use the auditor’s own checklists to be sure we save them time.
Another important result of proper preparation of your financial statements is that the SEC, upon reviewing your filing, will be able to see that you have applied the proper accounting methodology. This will reduce the number of comments you’ll get from them, and speed the registration process, if that is what you are trying to do.
Finally, analysts and investors are accustomed to seeing financial statements in a certain format. Adherence to that format lends credibility to your financial statements, and allows them to reach favorable conclusions about your company.
We have many years of experience preparing financial statements for all kinds of companies. Additionally, because this is all we do, we stay current on new developments in financial reporting, and incorporate these developments into your financial statements.