You Know About Financial Statements

Other than CPA organized statements, you could run into one through a Public Accountant, or a bookkeeper.

There are also Internally Prepared statements produced directly by using the consumer, such as with QuickBooks.

Then there’s this Secret One you likely do not know about. It may be a strategic assist and could no longer be advised by means of the accountant. It’s as much as you to invite for it! We name it a “Confirmed Internal FS.”

This record is an internal FS, consisting of QuickBooks, however with an crucial improve. When obtaining a Confirmed Internal Report, the president or business enterprise owner is needed to signal and date the business enterprise Balance Sheet (or perhaps each web page of the file) and write “Confirmed.” This is an affirmative announcement that the FS has been scrutinized. It is a report with more credibility, because a person is taking duty for it. (Read Secret #5 about the function self belief plays in bonding.)

Here is a real life example of how useful the Confirmed Internal FS may be. This week we’re issuing a P&P bond in excess of $eight million for an applicant with a 12/31 financial year-end. Obviously, the CPA file isn’t always to be had but. However, earlier than issuing the bond, we need to get a examine on their monetary photograph. How did the yr flip out?

We can’t get the CPA report yet, however an inner FS is available. Can the underwriter base a decision on this document? That depends on whether the surety has the power to offer an approval inside the absence of a CPA Audit or Review (Many underwriters are certain with the aid of strict policies that tie their hands.)

Fortunately, we were able to proceed primarily based at the self belief that the enterprise proprietor reviewed and Confirmed the economic statement. He signed his name and went on report, “You can rely on these numbers.” To us, that makes a big distinction!