Financial statements your lender, board and team can rely on

We prepare statements under Generally Accepted Accounting Principles (GAAP) — the standard U.S. accounting rules — for businesses whose lenders, owners or boards need them. • Balance sheet: what the business owns, owes and holds for its owners. • Income statement: revenue, expenses and profit for the period. • Cash flow statement: cash received and spent on operations, investments and financing. • Changes in equity: movements in owners' investment and accumulated earnings. • Notes: accounting methods, commitments, risks and other required explanations. You receive the agreed financial statements and notes for the reporting period.

We prepare internal reports for owners and managers who need to understand costs, cash and business performance. • Summarize key measures, such as sales, margins and overdue invoices. • Compare results with the budget and earlier periods, and investigate differences. • Break down results by department, product, customer or project. • Review available cash and expected receipts and payments. • Track loan covenants — the financial conditions in your lending agreement. You receive the agreed management reports with explanations of important changes and open questions.

We help businesses with customer contracts apply ASC 606 — the accounting rule for when and how much revenue to record. • Review the customer agreement and whether payment is likely. • Identify each separate good or service the business has promised. • Work out the contract price, including discounts and amounts that may change. • Divide the price among the promised goods or services. • Determine whether to record revenue at delivery or as work progresses. You receive a written accounting approach, supporting calculations and the agreed revenue schedules and notes.

We help businesses renting property or equipment apply ASC 842 — the lease accounting rule that puts most leases on the balance sheet. • Review rental and service contracts for agreements that contain leases. • Classify each lease to determine how its costs are recorded. • Calculate the right-of-use asset — the recorded right to use the item — and the amount owed. • Update balances for payments, contract changes and losses in value. • Prepare notes showing lease costs, future payments and accounting choices. You receive lease schedules, proposed accounting entries and the agreed financial statement notes.

We help businesses that pay employees with shares or share-based awards apply ASC 718 — the accounting rule for stock compensation. • Review options, share awards and plans tied to employee performance. • Calculate award values using the relevant valuation method and assumptions. • Schedule expenses over vesting — the period when employees earn their awards. • Review changes to awards and differences between accounting and tax treatment. • Compare records with the cap table — the list of company owners and their holdings. You receive award calculations, expense schedules and the agreed accounting notes and tax coordination items.

We prepare statements using other accounting rules for organizations whose report users do not need full GAAP statements. • Tax basis: use the accounting rules followed for income tax reporting. • Cash basis: record income when received and expenses when paid. • Modified cash basis: use cash accounting with agreed adjustments for selected items. • FRF for SMEs: a simplified reporting framework for small and medium-sized businesses. • Regulatory basis: follow the reporting rules required by the relevant regulator. You receive statements that identify the accounting basis used and explain important differences from GAAP.

We prepare consolidated reports — statements that present related companies as one group — for owners and lenders who need a group-wide view. • Review ownership and control to decide which companies belong in the reports. • Compare balances between companies and investigate differences. • Remove transactions within the group so they are not counted twice. • Record acquisitions and the share of results belonging to outside owners. • Prepare combined statements for commonly owned companies where appropriate. You receive the agreed group statements, supporting schedules and accounting entries.

We research accounting questions for businesses facing unusual transactions, new rules or questions from their independent auditor. • Review purchases of businesses or assets and how the price is assigned. • Assess changes to loans, ownership arrangements and business structure. • Explain new accounting rules and the changes needed in your records. • Document policies for recording income, costs and estimates. • Prepare written accounting explanations and help answer auditor questions. You receive a written analysis of the agreed question, proposed entries and supporting notes where needed.