Accounting Services
Keeping accounts amounts to a money trail in your business and personal financial affairs. Without accounting, bank statements and canceled checks are not enough. Financial reports include: a balance sheet, a measurement of assets (what you own), liabilities (what you owe), and net worth. An income statement is a report of what happened to your money over a period of time, say a month or a fiscal year.
Tyler Lynch, P.C. performs auditing and accounting services for our clients as needed. As part of these services, we help clients evaluate their financial controls to assure that your money tracking processes are working. In short, if you fail to bill customers for all the completed work then you do not make all the profits you deserve.
Standard reports on client financial statements issued by CPA's include compilations, limited reviews, and audits. The amount of responsibility taken by a certified public accountant varies according to the nature of the engagement.
Compilation Reports
A compilation report on a set of financial statements, we issue a report that says that the amounts reported on the financial statements agree with those on the company's books. We have grouped the numbers in a standard format, and have inquired of management regarding certain needed disclosures, such as loan terms.
Limited Review Services
A limited review report on a company's financial statements involves more analysis and inquiries of management on our part. However, we have not confirmed with third parties such as banks, customers and vendors whether they agree with the amounts on our clients books. Therefore, this is not an audit, just a limited review.
A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. In a review we do not perform audit procedures in accordance with generally accepted accounting principles. For example, we do not make specific inquiries to banks, lenders, customers, and vendors confirming the amounts due from them to the company or due to them by the company. Nor do we perform other audit procedures, such as detailed tests of accounting transactions for validity.
A review is made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles.
Audit Services
When Tyler Lynch, P.C. issues an audit review report on a company's financial statements, we provide an opinion that the company's financial statements are fairly presented in accordance with generally accepted accounting principles. Fair does not mean perfect, but it does mean that a reader of the financial statements would not discover material errors in the report presentation. Generally accepted accounting principles are established by the American Institute of Certified Public Accountants, the Financial Accounting Standards Board, and other substantial authorities.
An audit includes various analytical procedures as well as tests and confirmations to assure that the amounts in the financial statements are fairly presented at the date of the financial statements. For example, we do make specific inquiries to banks, lenders, customers, and vendors confirming the amounts due from them to the company or due to them by the company. We also perform other audit procedures such as detailed tests of accounting transactions for validity.
