According to U.S. GAAP, general purpose financial reporting is defined as a full set of financial statements notes to the financial statements. A full set of financial statements typically includes: Income Statement, Balance Sheet, Statement of Cash Flows, Comprehensive Income and Owner’s Equity. Nonpublic entities may choose to follow a general purpose framework or a special purpose framework.

Comparison of actual results to the annual business plan is the first and most basic level of control and evaluation of operations. Costs are categorized as either variable or fixed. Actual results will be compared with budgeted results.

A financial model will be designed to forecast the company performance into the future. Assumptions will be made based on a growth rate to forecast sales, cost or profit margin, working capital and fixed capital investments. Then decision-making can be made by management for; making acquisitions, raising capital, or expanding the business.

Reviewing a company’s liquidity, activity, leverage, profitability and coverage ratios. We focus on finding economic connections that lead to better managerial decisions. Comparison of data over different time periods, competitor, industry and internal departments with interpretation of the results. Horizontal analysis is useful in evaluating trends and noting material changes from period to period. Vertical analysis assists in period-to-period comparison, but also allows for comparability among other entities as the statement is in a common size format.

The difference between the cash balance reported by the bank and the cash balance per the depositor’s records are explained through the preparation of the bank reconciliation. The result of the reconciliation will appear on the balance sheet as “cash and cash equivalents.”

We take the time to review your prior financial reports and current outstanding transactions. Next step is to make a series of adjustments to correct errors from prior year reporting. Gather records of asset purchases and loan covenants. This information will be organized and compiled into financial statements based on the chose accounting framework.