Las Vegas Accounting Services
As a business owner, you may already have a bookkeeper. Or, you may not have anyone with the right accounting service skills. Moreover, you might be doing all the work yourself and potentially spending money or time on the wrong things.
When trying to run a business to the best of your ability, you need someone more than a bookkeeper. You need a professional who can create, oversee, and properly interpret your financial statements and reports.
To avoid the headache of the financial business grind, find an expert in accounting services. Working with an experienced CPA can allow you to focus on the big picture and what you do best: running your business.
How Accounting Is More Than Bookkeeping
Accounting and bookkeeping are two different but related functions. Bookkeeping is the process of maintaining a proper set of books and a base for accounting.
On the other hand, accounting takes the information in the books and puts it into a format, also known as reporting. The owner/manager can then use these reports for interests outside the firm.
Complete and Professional Accounting Services
John Reddall, CPA, located in Las Vegas, Nevada, provides the following services:
Users outside the firm generally required these types of reports. The obvious users of external reports would be bankers, investors, and government agencies such as the Internal Revenue Service.
Additionally, an accountant will prepare these reports according to a specific set of rules, known as Generally Accepted Accounting Principles (GAAP). Essentially, this attempts to give the external user some level of assurance as to the financial condition of the company.
There are three types of external financial statements:
Balance Sheet. A summary at a specific point in time that shows what the business owns (Assets), what the company owes (Liabilities) and the claims of ownership (Equity)
Profit and Loss (Income Statement). A listing over a range of time (monthly, quarterly, annually and even daily) of the company’s operations. It will show the company’s revenue for the period, the associated expenses and the profit or loss.
A company’s management issues external reports typically, However, they may have a letter attached by a CPA firm providing various levels of assurance as to the fair presentation of the information.
We prepare compiled and reviewed statements but do not perform audits. If your firm needs an audit, we can refer you to a reputable company that performs them.
There are three types of assurance
Compilation. This is merely an assurance by the CPA firm that the financial statements have been issued by management in accordance with GAAP. No opinion as to the fairness of the financial statements is given.
Review. More than a Compilation but substantially less than an Audit (see below), a review entails a series of tests and analyses by the CPA firm to give a limited level of assurance that the financial statements do not require any material modifications as well as being in accordance with GAAP.
Audit. An audit assures that the financial statements presented by the company management are without material misstatement in accordance with GAAP.
Our firm also prepares internal reports.
The internal management of a company generally uses these reports. The bookkeeping system also generates these reports, so the importance of a proper set of books remains. However, the format of the statements is much more tailored to management use.
While GAAP is important, it is not the underlying basis of the reports.
These reports will include a monthly Balance Sheet and a Profit and Loss, but it is rare to see a Statement of Cash Flows.
More likely, the following reports will be prepared among many others:
- Budget versus Actual
- Daily cash on hand and projections
- Collection reports
- Cost reports
- Tax projections
- Profit and loss by location, department, product line or any other meaningful category and for any time frame
While the bookkeeping system generates these reports, most accounting programs, except the most expensive and complicated ones, do not provide the tailored reports that management requires. More likely, the information has to be exported into a spreadsheet program where it can be formatted accordingly.
John Reddall CPA is a small business accountant who can provide the basic internal financial reports (Balance Sheet and Profit and Loss). We will also work with your company to create specific reports tailored to your management needs.
Schedule a free consultation or inquire more about our services.