One of the first things a lender will want to see before approving a business loan is a company’s financial statements. These critical documents provide a detailed view of all assets, outstanding debts, as well as profits and losses. As a leading CPA firm, Cheryl Hawkins Tax & Accounting in Jordan, MN, specializes in preparing comprehensive financial statements to keep owners and managers informed about their company’s operational status.

Financial statements are generally grouped into three categories: balance sheet, cash flow statement, and income statement. There are a few important benefits of having up-to-date documentation. Here are just a few:

• Credit Access: Whether it’s applying for a commercial loan or business credit card, the lender needs to review the balance sheet, which reveals how much debt is owed and whether the company pays bills in a timely manner. Knowing this information can help determine if the applicant is considered credit-worthy.
• Remain In Tax Compliance: To accurately prepare federal and state tax returns, a company will need accurate financial statements. From payroll taxes and customer sales taxes, the documents provide a thorough accounting of all required tax obligations. In the case of an audit, the business owner may also need to back up financial statements with pay stubs and receipts for products and services.
• Long-Term & Short-Term Plans: Current financial statements can also spot specific trends when it comes to payment and accounting receivable patterns to vendors and others. The business owner can track which clients do or do not consistently pay on time and whether plans are needed to pursue collection efforts or to sever vendor relationships.

From non-profit organizations and small businesses to large corporations, Cheryl Hawkins Tax & Accounting continues to be the one-stop shop for a number of critical services, including the professional preparation of financial statements. Clients rely on the local firm for thorough tax preparation services, bookkeeping services, and more.

With a stellar 20-year track record, Cheryl Hawkins Tax & Accounting provides a unique experience for all clients free of judgment, stress, and always with a friendly and personable touch. Learn how the firm can help your business stay in the black by calling (952) 222-8272 or visiting the website to arrange an appointment.