Profit & loss
Income, costs and profit for the period, compared with last month, last year or budget.
Financial statements you can hand to a lender, investor or partner.
We prepare your profit & loss, balance sheet and cash flow statement from reconciled books, monthly, quarterly or at year end, with comparisons and short notes that explain what changed.
What we prepare
Each statement answers one question.
Together they show how the business performed, what it owns and owes, and where the cash went.
Balance sheet
Cash, receivables, equipment, loans and owner's equity on a single date.
Cash flow statement
Why profit and cash in the bank are different, split into operating, investing and financing.
Owner's equity
Contributions, draws or distributions, and retained profit over the period.
Budget vs. actual
Each line compared with your budget, with the biggest differences explained.
Cash forecast
A 13-week view of expected cash in and out, so shortfalls show up early.
Basis of accounting
Cash, accrual or tax basis.
We recommend a basis based on who will read the statements and how your business runs.
| Basis | Records income and expenses | Best for |
|---|---|---|
| Cash | When money comes in or goes out | Small service businesses and simple tax reporting |
| Accrual (U.S. GAAP) | When earned or incurred, even if not yet paid | Businesses with inventory, lenders, investors and buyers |
| Tax basis | Following the rules used on the tax return | Owners who want statements that match their return |
Levels of CPA service
Which level does your lender or investor need?
U.S. CPA standards set four levels of service for financial statements. Most small businesses only need the first.
| Level | What the CPA does | Assurance | Usually needed for |
|---|---|---|---|
| PreparationWhat we provide | Prepares statements from your books | None | Owners, managers, most small loans and partners |
| Compilation | Prepares statements and issues a short report | None | Some lenders and landlords |
| Review | Analytical procedures and inquiries, with a report | Limited | Larger bank loans and some investors |
| Audit | Tests records and controls, with an opinion | Reasonable | Large loans, investors, regulators, sale of a business |
Not sure what your lender needs? Ask them for the required level in writing, and we will tell you whether our statements meet it.
How it works
From books to finished statements.
Monthly clients receive statements by the 10th of the following month.
Step 1
Check the books
Every account reconciled and the period closed before anything is prepared.
Step 2
Adjust
Accruals, depreciation and prepaid expenses recorded where needed.
Step 3
Prepare
Statements built with comparisons and notes on major changes.
Step 4
Review & deliver
CPA review, then a PDF and Excel set, with a call if you want one.
FAQ
Financial statement questions.
Can you prepare statements if my books aren't up to date?
Yes. We catch up and reconcile the books first, then prepare the statements. Statements built on unreconciled books are not worth handing to anyone.
My bank asked for financial statements for a loan. Can you help?
Yes. We prepare the statements and the comparisons banks usually ask for. Check whether the bank needs a compilation, review or audit, and we will tell you whether our statements fit.
What is the difference between cash and accrual statements?
Cash basis records income when money arrives and expenses when you pay. Accrual records them when earned or incurred. Accrual gives a truer picture for businesses with inventory or customers who pay later.
Can you prepare statements from bank statements only?
We can prepare a profit & loss from bank statements alone. A complete balance sheet also needs loan balances, assets and amounts owed to and by the business.
Contact
Book a free consultation.
Tell us a little about your business and we will reply within one business day.