Overview of our services…
Financial statements tell the story of where your business has been, and forecasts enlighten the reader of where your business is going. Both prove useful when you are pursuing bank credit facilities or courting prospective buyers and investors. Linked Accounting has extensive experience in presenting the important details of your story to third parties. Our team will meet with you in the final months of the fiscal year to review the financial story of the year, review your financial ratios and make recommendations of changes you will want to make prior to the closing of your fiscal year so the best story of your business is presented to your lenders and other interested third parties.
And in detail…
Most financial statements prepared by Accountants are presented using U.S. Generally Accepted Accounting Principles (GAAP). The differences in your financial story when presented in GAAP may be quite significant. To better understand how GAAP can help present your story in the best light, review Tax Return Numbers vs. GAAP
In detail…
Accountant prepared financial statements are grouped into three categories where Assurance is a key distinguishing factor between the three statement categories. Assurance is an important accountant responsibility and tells the third party if the CPA is confident enough in the presentation of the financial data that the accountant is willing to provide a type of “guarantee” on the accuracy of the numbers.
Compiled
In the most basic level of service, Compiled, the accountant takes the data provided by you and converts it into financial statements presented on the CPA’s letterhead. Compiled financial statements are useful if the Company only needs a conversion of data to GAAP for a more accurate financial presentation to third parties, including lenders. Accountants provide no assurance regarding the accuracy of the numbers presented in a Compiled statement.
Reviewed
A financial statement Review is a mid-tier level of service under which the accountant obtains limited assurance that there are no material modifications that are needed to your financial statements for the statements to be presented accurately in GAAP format. To reach a limited level of assurance, Linked Accounting will dive a bit deeper into your accountant data in search for mistakes or fraud. The added professional hours associated with a Review are designed to help you and your third parties feel a greater sense of confidence with your numbers.
Audited
The highest level of financial statements provided by a CPA, an audit includes a declared opinion by the CPA about whether the financial statements are free from material misstatements from errors or fraud. When courting lenders for a large credit facility or future buyers and private equity firms, third parties have a preference towards audited financial statements because they know the CPA carries a much higher level of responsibility for the accuracy of the numbers and the CPA’s errors and omission insurance policy could pay a claim if the CPA was wrong about something material. Audited financial statements are the highest level of assurance a CPA can offer. The higher assurance is obtained through the execution of a well thought out audit plan to match the audit work to the areas of the financial statements where the greatest risk of errors is likely to be. Through observations, testing, confirmations from third parties and the auditor’s judgement, the auditor will be able to reach an appropriate conclusion regarding your financial statements.
Financial Statements and Assurance Services
Linked Accounting is a full-service accounting firm serving clients nationally.
Audited
The highest level of financial statements provided by a CPA, an audit includes a declared opinion by the CPA about whether the financial statements are free from material misstatements from errors or fraud. When courting lenders for a large credit facility or future buyers and private equity firms, third parties have a preference towards audited financial statements because they know the CPA carries a much higher level of responsibility for the accuracy of the numbers and the CPA’s errors and omission insurance policy could pay a claim if the CPA was wrong about something material. Audited financial statements are the highest level of assurance a CPA can offer. The higher assurance is obtained through the execution of a well thought out audit plan to match the audit work to the areas of the financial statements where the greatest risk of errors is likely to be. Through observations, testing, confirmations from third parties and the auditor’s judgement, the auditor will be able to reach an appropriate conclusion regarding your financial statements.
Employee Benefit Plan Audits and Form 5500
Generally, the Department of Labor requires your employee benefit plan(s) to be audited by an independent CPA when you have greater than 100 eligible participants. Linked Accounting routinely performs audits on employee benefit plans.
An audit of your employee benefit plan requires our firm to examine the financial statements of your benefit plan where the primary focus of the audit is to accurately gauge the ability of the plan to cover current and future benefits and payments.
Upon completing the Employee Benefit Plan audit, Linked Accounting will prepare the annual Form 5500