Financial statements serve as the primary source of demonstrating an organization’s financial position and are a critical tool in making management decisions and obtaining financing by third parties. There are three different types of attest services that are performed on financial statements: audits, reviews or compilations. Each different type of service results in the issuance of a report on the financial statements but only an audit results in the expression of an opinion. While financial statements are generally issued in accordance with generally accepted accounting principles (GAAP), other solutions are sometimes available to avoid the complexities that are mandated by GAAP. Some of these alternatives include GAAP exceptions, income tax basis financial statements, or other comprehensive basis of accounting (OCBOA) financial statements.
The basic difference between an audit, review and compilation is as follows:
An agreed upon procedures engagement provides an excellent solution when a client or other party (parties) would like independent verification of particular information without producing actual financial statements. In particular, our firm and the client would "Agree Upon" specific procedures to be performed and we would then report on our findings. Each engagement is tailored specifically to the needs and requirements of the client. These engagements are often utilized as a tool to assist management in analyzing particular elements of their operations or are sometimes required by third parties (such as banks, potential investors, or regulatory agencies).
Some examples of the types of agreed upon procedures we provide include, but are not limited to, the following:
Occasions exist when an organization (or a proposed organization) must present financial information based on future activity rather than historical activity. Sometimes this information is needed only for internal purposes such as management's analysis of the impact of entering into a new acquisition or contract. On other occasions the presentation of financial information based on future activity is required by a third party. This may arise if the organization is trying to raise capital or negotiate financing arrangements. In any event, there are two types of solutions available to management: forecasts and projections.
The basic difference between forecasts and projections is as follows:
A properly designed internal control environment is essential for accurate financial reporting and can help deter fraud or eliminate the opportunity of any misappropriation of assets. The internal control environment must be designed to accommodate the size and configuration of each individual organization. Beucler, Kelly & Irwin, Ltd. has extensive experience documenting and evaluating the internal control procedures that have been implemented. We will interview personnel in various areas of the organization to gain a full understanding of the control environment, evaluate the effectiveness of these controls, and identify any opportunities for strengthening internal controls and operating efficiency.
Often a few minor changes in the procedures, controls and job responsibilities can have a significant impact on the control environment; particularly in smaller organizations.
Running a business is a time consuming process that often requires a business owner to direct his/her attention to matters other than their field of expertise. Due to personnel restraints and the sensitivity of the information, the maintenance of adequate books and records is yet another burden often placed on the small business owner. Our experience indicates that most small business owners are highly intelligent and motivated individuals; and while they are capable of performing the basic bookkeeping functions, they may not have an accounting background and would rather focus their attention on matters that will contribute to the company's success.
The outsourcing of the bookkeeping function is a cost effective solution that will provide your business with timely, accurate financial records that can be used as a valuable management tool.
We have extensive experience assisting clients in the maintenance of accurate books and records. What distinguishes our firm from other organizations that provide bookkeeping services is our in depth knowledge of the tax code and generally accepted accounting principles (GAAP). We believe that it is extremely important to code each transaction to the proper account from inception and to understand the underlying implications of the transactions. This will reduce and often eliminate altogether the need for year-end adjustments to the books thus avoiding any unnecessary surprises and allowing for adequate planning. In addition, our experience lends itself to our ability to analyze the account information rather than simply going through the motions of recording transactions.
We provide a full spectrum of bookkeeping services including, but not limited to, the following: