10 min talk achieve dreams

ACHIEVING YOUR DREAMS

Provided by your Financial Statements

With help from

Gay Hermann CPA Inc

Different Names for “Accountants”

• Accounts Receivable or Payable – record transactions• Bookkeeper - with or without training, records

transactions, limited analysis ability• Full Charge Bookkeeper – analyze transactions

• Para-Professional - bookkeeper with some accounting training, in CPA office

Different Names for “Accountants”

• Certified Accountants - 4 to 6 years of training, Certification by StateFirm-level Peer Review

• “Chief Accountants” – usu CPA’s that have lost or given up their certification

What to look for in a CPA

Member of the AICPA and the Ohio Soc of CPA’s

Make sure your CPA’s firm is peer-reviewed

Ask other businesses for references

Make sure CPA’s background and expertise fit your company’s business and your goals.

FINANCIAL STATEMENTS

Balance Sheet

Income Statement

Cash Flow Statement

ACCURATELY REFLECT A COMPANY’S FINANCIAL POSITION

FundamentalsThe Profit and Loss Statement

2003 2002

Revenues $ 2,133,902 $ 1,566,978

Cost of Goods Sold $ 1,304,303 $ 1,085,100

Gross Profit $ 829,600 $ 481,878

Operating Exps $ 423,827 $ 317,990

Net Income(Loss) $ 405,773 $ 163,888

FundamentalsThe Balance Sheet

2003 2002

Assets $ 482,063 $ 364,781

Liabilities $ 323,411 $ 219,633

Owners Equity $ 158,652 $ 145,148

Total Liabilities & Equity

$ 482,063 $ 364,781

It’s the quality that counts,

Not the format of the numbers

CPA generated Financial Statements Give Quality Assurance

What a CPA does

Numbers are just numbers if they are error-riddenThey are not information. They cannot be relied upon to make business decisions

A Tax Compilation

The CPA takes your numbers

Adjusts for depreciation

Adjusts for “impossible” numbers

Applies tax rules and regulations

Puts numbers in the return

No Quality Assurance

NOT for making business decisions

A Compilation

Takes your numbers

Reconciles a few key accounts

Makes adjusting entries as needed to achieve a correct balance in the account

Prepares financial statements

Writes an opinion as to the level of reliability

A Review

Takes your numbers

Reconciles most accounts

Analyses certain key accounts for accuracy

Makes adjusting entries as needed to achieve a correct balance in the account

Prepares financial statements

Writes an opinion as to reliability

Usually has footnotes to explain some accounts in greater detail

What Do You Need?

• EVERY COMPANY IS DIFFERENT

• EACH COMPANY WILL NEED A DIFFERENT LEVEL OF SERVICE

Budgets and ProjectionsAccounts Receivable AnalysisAnalyzing Operating CostsSmall Business Loan ApplicationsChoice or Change of EntityRetirement PlanningInsurance CoverageEstate Planning

Other Services

My business is to help Your business To Grow Using my Close Personal Attention

In my office CPA means ClosePersonalAttention

Using Close Personal Attention

You Can Achieve Your Goals