Atlanta CPA Advises America's Business Owners on Bookkeeping
We have long believed and will continue to believe that a well informed client is best able to make wise and prudent business decisions. The below is a sample letter we might send to a client to help them keep their books and records current and in line with actual operating results:
In reviewing the past internal financial statements you forwarded I noted:
Your year to date annual sales are $10K monthly whereas last year was $15K, which is only 67% of prior year amounts. Please review/advise.
Your Distributions should be charged to the loan account you personally have outstanding.
Please forward to me a detailed list of all fixed assets the company has since inception so that we might put together a detailed fixed asset list.
I suggest buying the vehicle you listed on the books in your name personally and not that of the corporation as the company cannot afford this purchase and by turning in an expense report to the business your mileage deduction will most always provide the maximum deduction.
I suggest as an interim estimate of year to date depreciation that you record $1000 by Debiting Depreciation Expense on the P/L and crediting Accumulated Depreciation on the B/S.
Please review your Other Liabilities account as there are debit amounts listed that either need to be re-classed or corrected.
Your internal books year to date for this year reflected a net loss and several thousand dollars of charitable contributions. I suggest your defer future contributions to a time when the business is "in the black" and is not losing money.
Please discuss with us prior to adding any new shareholders so that we might advise and protect your business interests accordingly.
I suggest you move your Salaries, Payroll Taxes, Medical Insurance and Travel Expense to the Cost of Goods Sold Section.
Please forward to me your year to date salaries report by employee for the interim period you forwarded.
As the IRS accepted your Installment Agreement, please be sure to make the monthly payments until the balance is paid in full. Please be reminded that Tax law requires you to obey the terms and conditions of the levy regarding the withholding from your wages and remitting of monies over to the IRS.
John Dillard, CPA of His CPA, PC (An Atlanta CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304
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