Preparation of Annual Financial Statements

Financial statements are the most important documents prepared by your accounting system. They inform you about the profitability of your company, are used in the calculation of income and other taxes payable, and provide both you and your bank with information necessary to make credit decisions. Alternative accounting treatments may have consequences both in the amount of tax your company has to pay, the way it is regarded by financial institutions, or the value attributed to the business in the event you want to sell it or take in a partner.

I will help you navigate this minefield by clarifying the available options and the likely results of choosing any particular course of action. Not only can I insure that your statements are accurate, but I can communicate the information in a way that is easily understandable. As our friends above learned the hard way, choosing the wrong accountant can be a very expensive mistake.

I consider the preparation of the financial statements as a means to an end not an end in itself. Although accurate financial statements are essential, understanding them, and using them to make effective business decisions is more important. It is my job to help you make those decisions by sharing my knowledge.

Preparation of Tax Returns

Not all of you have a business, but if you are working or have different sources of income, you must file tax returns. There are many tax programs available that can help those of you with simple tax returns (one source of income). On the other hand, all kinds of decisions may come into play when rental properties, investment income, or unincorporated businesses are involved. These decisions require experience and expertise, which is not provided by a simple tax preparation program. The benefits of going to a qualified professional such as myself almost invariably outweigh the costs. Not only will I prepare the returns professionally, but I will give you ongoing advice on how to minimize your taxes in the future.

Business Financing

Getting a financial institution to provide a loan can be one of the most difficult and stressful areas of running a small business. Banks eye startups warily, since so many small businesses go under in the first few years. Achieving credibility with a financial institution is critical to the success of your business. Without bank support, you will have to finance the business out of your own pocket. Unless you have very deep ones, growth may be unnecessarily constrained.

Credibility with a bank is gained by:

Presentation is everything. Good relations with a bank depend as much on how you are perceived by the banker as on the financial information you present. If he doesn’t get a “good feel” about you, the deal may be lost. As your accountant, I can be instrumental in insuring that any presentation made reflects favorably on you and your business. I would act as a liaison between your company and its financial institution.

Business Plan Preparation

The business plan is a document articulating your company mission. It spells out the business you’re in, the market you serve, the results achieved to date if any, financial projections going forward, and your long term goals and how you plan to achieve them.

The business plan may be used to set up a credit facility with a financial institution, or raise venture capital. It enables prospective investors and lenders to assess the credibility of management and the business. A good business plan puts your company on the map.

Although I may not be the sole contributor to your business plan, I would certainly play a major part in its preparation. Much of the information provided is financial, including historical financial statements and projected statements of income and cash flow. These projections provide the basis upon which investors make their decisions. I could help you put together a sound, credible business plan.

Profit Planning and Budgeting

Your budget is an essential tool in helping you achieve your overall corporate goals. If you don’t articulate your projected costs and revenues over the course of the year, you have no way of knowing which direction you are going in or which direction you even want to go in. I can help you clarify your vision, and set down guidelines for reasonable levels of expenditure. More than one company has failed due to a lack of adequate financial planning.

Tax Planning

Income taxes can take up as much as 50% of our earned income in a year. It is the obligation of every taxpayer to minimize his taxes to the extent possible. Decisions regarding whether to incorporate or not to incorporate, how to draw money out of your business, whether to buy or lease a car or other peace of machinery can have a material affect on your income taxes. These decisions are complex and cannot be made without the help of a qualified professional.

There are often substantial benefits to incorporating. Incorporated businesses pay only about 20% corporate tax on income retained in the business. If your business is growing, incorporation is one of the best ways to keep needed capital out of the hands of the taxman.

Aside from my own twenty years of experience, I am connected to a network of tax lawyers who assist in specialized areas such as estate planning, corporate restructuring, and preparing the legal documentation for estates and trusts. I am prepared for any tax-planning contingency.

Estate Planning

Estate planning involves, but is not limited to:

Estate planning involves a lot more than just preparing a will. In fact, wills aren’t always essential to an effective estate plan. Each case is different and requires a review of the individual’s assets as a starting point. Sometimes the objectives of an estate plan can be achieved by simply changing ownership or designating a beneficiary.

In preparing your estate plan I will review your assets, beneficiaries and will. I will then communicate with your lawyer, or will refer to one of my own legal contacts should a lawyer be required.