Atlanta CPA Firm Advises Atlanta Business Owners/Entrepreneurs on Keeping Your Internal Books and Records Current and Correct

Atlanta CPA Firm Advises Atlanta Business Owners/Entrepreneurs on Keeping Your Internal Books and Records Current and Correct

Financial statements are often misused and abused. They are often ornately presented with accountant's opinions ranging from audits to compilations. Often we even find a statement of cash flows and financial footnotes. I believe that financial statements without narratives, analysis of trends, and a review of expenditures are nothing more than formal proof that the bank account has been reconciled and that everything balances. Data without thorough critique is useless.

What do these statements tell us? Numbers and data when prettily presented often are an accountant's representation of the financial status of an entity. Below is a sample narrative we might send a business owner to help them ensure that their bookkeeping and accounting is both correct and current:

Got your data for your returns and had the below critiques to your internal data:

-Please move the monies in Equipment and Other Depreciable Assets to the Fixed Assets Account.

Please as of 12-31-09 post the below Journal Entries:

-Please debit Depreciation Expense on the Profit and Loss and Credit Accumulated Depreciation for $5000 to record this year's Depreciation

-It appears that $10,000 of the monies in the Shareholder Distributions account is for the 2008 tax year. If this is so, please Debit Retained Earnings and Credit Shareholder Distributions for $10,000. After you have done this the monies remaining in Shareholder Distributions should be for this year only and the Retained Earnings account should be $2000.

Please be reminded that tax law requires you to take reasonable compensation, in the form of salary, for your services to the corporation. Please forward to me copies of all W-2's and the W-3 the company issued for 2009.

When you get the above ready please get to me the Standard Balance Sheet and Profit and Loss and I will finish the return ASAP.

Utilizing a payroll service will do much to make this administratively burdensome process more seamless than if you strive to go it on your own. To learn more visit http://www.hiscpa.com/payroll.html Knowing what is a legal tax deduction and the documentation thereof is essential to sound business management. To see how you can be ready http://www.hiscpa.com/business-expenses.html Ensure that your workers are properly classified predominantly to ensure that there are no workers, who are truly employees, that you are in error classifying as employees, visit http://www.hiscpa.com/independent-contratctor.html A Christian CPA Firm: Never Underestimate the Long Term Benefits

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html

John Dillard is an Christian Speaker/Author and Duluth GA CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!