Atlanta CPA on Keeping Good Internal Books to Ensure Your Manage Your Business Financial Affairs

Atlanta CPA on Keeping Good Internal Books to Ensure Your Manage Your Business Financial Affairs

A Company's 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. 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.
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. Helping a business owner keep and maintain sound internal data and financial statements should be the predominant focus of the CPA. A Certified Public Accountant can do much to guide you to the proper chart of accounts, financial statement presentation and account classification. The below is a sample excerpt that we might forward a client to assist the business owner/entrepreneur in maintaining adequate books and records:

Please make these changes to you corporate books as of 12-31-09. These entries will reflect the adjustments/amendments we made to prior returns and the updates you gave me on the fixed asset schedule.

Debit Accumulated Amortization and Credit Accumulated Depreciation for $1000 to adjust your internal books to the detailed Fixed Asset Schedule.

Re-title the Account Accumulated Depreciation to Accum/Depr/Amort.

To record the new detail of the leasehold improvements you provided, to reflect past depreciation claimed and their transfer to the LLC please debit Leasehold Improvements for $70,000 Credit Accumulated Depreciation for $30,000, and adjust your internal books to equal the Retained Earnings on the Tax Return by crediting the account for $40,000.

To record 2009 Depreciation Expense, Debit Depreciation Expense on the Profit & Loss and Credit Accumulated Depreciation on the Balance Sheet for $16,000.

http://www.hiscpa.com/forensic-accounting.html  Forensic Accounting by Atlanta CPA
http://www.hiscpa.com/budgeting.html  CPA Helps Reduce Unnecessary Spending: Budgeting 101 http://www.hiscpa.com/article1.html  Illustrated Difference Between Planning & Historical Accounting
http://www.hiscpa.com/article3.html  Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html  Understanding Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html  Tracking Marketing Statistics for Your Business

And this is only some of the information available on our web site. You also have at our blog a host of other varied and timely tax and business management issues you can use.

John Dillard, CPA of His CPA, PC (An Atlanta Christian 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

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!