Servicing Minneapolis, St. Paul MN, and surrounding areas.
When you need an audit, review, or compilation, give us a call. In addition to providing independent checks of your records, our auditors can help you dig deeper to assess your business and financial situation. Expect our team of certified public accountants (CPAs) to provide constructive solutions for all levels of assurance.
An audit of your financial statements can provide assurance to creditors, lenders, employees, analysts, prospective shareholders, governments, and even communities that your organization is operating as it should. At JAK + Co., our auditors provide an independent check of your records for accuracy, honesty, and risk. Not only do we evaluate your financial statements for conformity with generally accepted accounting principles (GAAP) but we also assess your financial situation. With this understanding, we can offer recommendations for improving efficiency and profitability.
The purpose of an audit is to provide assurance that your company’s financial statements are in conformity with GAAP. It’s the highest level of assurance service a certified public accountant can provide. To do so, our auditors adhere to professional ethical standards at every step of the audit process. The result: a true and fair view of your financial situation that you can share with end users.
A review of your financial statements is less extensive than an audit and results in a lower level of assurance. In some instances, such as when your business is in its first year of operations and seeking a bank loan, it might be all you need. Compilations are even less involved, but they can be valuable in the right situation. The purpose of a compilation is to help your business organize and standardize its financial statements; it’s primarily for internal use, as it doesn’t provide assurance (i.e., no assurance) to the end user.
An internal audit is an independent evaluation of your company’s internal controls, corporate governance, and/or accounting processes. In doing so, it provides an independent assurance service to your board and other stakeholders on the effectiveness of your organization’s risk management and control processes.
The result of an audit is assurance. In other words, think of assurance as to the level of confidence the auditor has in an organization’s financial statements being free of material misstatement caused by error or fraud.
Sometimes, an organization may need to simply express compliance with regulatory requirements, a contractual agreement, or a certain process. In these instances, “limited” or “reasonable” assurance may be sufficient. A compilation does not include assurance because the auditor is simply presenting client-prepared financial information in an organized, standardized statement form.
As we’ve mentioned, having audited financial statements can help to provide a clear picture of your organization’s financial situation—and this can be valuable in many situations. For instance, if you’re planning to sell your company, an audited financial statement could help you justify your asking price to prospective buyers. If your company has many shareholders, audited financial statements could help to reduce the cost of—or even prevent—litigation. And if your business is planning for an initial public offering, you must have three years of audited financial statements before you’re permitted to sell stock options. Banks and other lenders, as well as certain government contracting programs, may require you to provide audited financial statements, too.
The short answer: It depends. If you simply need someone to enter day-to-day transactions into your accounting system, a bookkeeper is likely your best bet. But if you need someone to interpret and analyze your financial data, a business accountant is almost certainly the answer. Still unsure of which financial professional is right for your business? This blog post outlines a few questions to consider when making the call.
Finding the right accounting firm is not easy. Here is a list of free resources to help you make the correct decision.
The Certified Construction Industry Financial Professional (CCIFP) is someone who has voluntarily met the required certification criteria with regard to education, experience, and a demonstrated understanding of the industry’s body of knowledge. A CCIFP values and maintains the highest possible standards of knowledge, competence, and ethical behavior – as high as any other profession on which businesses and the public rely. Click here to learn more about how JAK serves the construction industry.
Facing an audit can be daunting. Here are three suggestions:
An audit can be a scary thing for businesses! In summary keep these things in mind:
We encourage you to read more about what to expect here.
Understanding automobile allowances is important for accounting as both an employer and employee. Click here for our guidance on automobile allowances.
Likely, yes. The IRS wants to make sure that all individuals and entities are reporting all of their income. We’ve outlined the important guidelines regarding 1099-MISC here
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