Who Needs a Financial Statement Analysis?

Bedinghaus & Company | Florida CPAs

A financial statement analysis provides you an overview of the financial activities of your business and helps you quickly identify areas of concern, determine whether you have the finances to grow and provides evidence of your company’s value when seeking financing or partnerships. 

Done monthly, quarterly, annually or as needed, a financial statement analysis empowers you with the metrics necessary to know the financial health of your business. Whether helping you determine the vitality of your business today, projecting the sustainability of your business for tomorrow or identifying any issues in sales or accounts receivable, analyzing financial statements helps you keep your finger on the pulse of the number that matters most: your bottom line. 

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Securing Financing For Your Business

The analysis of financial statements also proves critical when you seek to secure financing for your business. We can help prepare Pro-forma financial statements in addition to generally accepted accounting principles (GAAP) -adjusted statements to provide operating results to potential investors. 

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Ensure Your Company is Financially Stable & Setup For Growth

We can also create an abbreviated financial statement that shows the financial stability of your company without giving away confidential information as more and more vendors and larger customers are requesting financial statements as a condition of doing business. 

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Valuation & Selling of Business Assets

Additionally, should you ever go through a sale, buyout, valuation, or similar, we can analyze and advise on financial statements that will prove crucial to interested parties. 

How Can A CPA Help With My Financial Statements?

There are many factors that will determine the right financial statement for your business so we offer three levels of assurance:

Accuracy & Compliance

An audit is the highest level of financial statement service as it enhances the degree of confidence that intended users, such as lenders or investors, can place in the financial statements. Through an audit, we obtain reasonable assurance that your financial statements are without material misstatement, and, if discovered, determine whether the misstatements are from error or fraud.

Additionally, we may uncover some deficiencies or weaknesses in your organization’s systems and offer suggestions for improvement. 

Strategy & Planning

A review engagement provides limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with the applicable financial reporting framework. The review also provides a better understanding of key relationships among certain numbers, and gives more assurance about the financial condition presented in the financial statements. 

Creation & Organization

The objective of a compilation engagement is to assist in presenting financial information in a financial statement to provide assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with the applicable financial reporting framework. Each level of financial statement analysis addresses specific circumstances such as your budget and requirements from your bank or other entities, so it’s important to understand each report’s inherent strengths and weaknesses so you can select the one that best suits your needs.

To find out which type of report is right for you, contact us today.