Accounting & Audit

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Financial Statement Audits, Reviews & Compilations

Timely, accurate, and informative financial reporting is the backbone of a company’s finance function. Financial reports provide the critical information to make informed decisions. From public companies with audit requirements to private companies seeking capital, audit and assurance services can help you to meet your compliance requirements. HetslerCPAs provides a full range of cost effective accounting services.

An audit is a unique opportunity to develop a thorough understanding of about a business and the industry in which it operates. Through this enhanced understanding, HetslerCPAs provides proactive solutions for maximizing profitability and efficiency. Our professionals can recommend improvements to business processes and internal controls, improve the quality of the information your system generates, develop useful management reports and help organize and interpret the financial information to help you make better decisions.

Which Financial Statement do you need?

Each type of financial statement report may suit specific circumstances, depending on requirements from your client’s bank or other parties, as well as meet budgetary needs.

Understanding each report’s unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.

Several options for assurance and attest services exist for businesses. We provide financial reporting on all three levels of assurance and attestation. To understand what you need, continue reading for more in-depth explanations of the different services.   

Financial Statement Audits

Each type of financial statement report may suit specific circumstances, depending on requirements from your client’s bank or other parties, as well as meet budgetary needs.Understanding each report’s unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.Several options for assurance and attest services exist for businesses. We provide financial reporting on all three levels of assurance and attestation. To more thoroughly understand what you need, click for more in-depth explanations of the different services.

Financial Statements Audits & Audits of Internal Controls Over Financial Reporting - Highest Level of Assurance

  • An Audit is an examination, on a test basis, in accordance with generally accepted auditing standards, providing reasonable assurance on the financial statements. Audits are generally performed in order to provide assurance to a third-party decision maker (shareholders, lenders, regulators, etc.). The objective of an audit is to express an opinion on the fairness with which they present, in all material respects, financial position, results of operations, and cash flows in conformity with generally accepted accounting principles (GAAP) or another specified financial reporting framework.

  • Although audit services are generally provided to meet a third party requirement, we understand this service has greater value for you when we identify opportunities for your organization. With our industry knowledge, we look for ways to improve your organization’s operations, increase effectiveness, and attain efficiency to increase the bottom line.

  • An audit includes a review of internal controls, testing of selected transactions, and communication with third parties. A physical inspection may be performed by observing your inventory counting methods in addition to test counts. Tests will be performed to document and examine each operating cycle, including sales and cash receipts; expenses and cash disbursements; and payroll. The audit papers include a detailed work program to document the examinations and testing performed, as well as the client’s supporting work papers. Based on the findings, a report is issued on whether the financial statements are fairly stated and free of material misstatements. These audited financial statements provide the user with the auditor’s opinion as to whether or not the financial statements are presented fairly, in all material respects, in conformity with the applicable inancial reporting framework

An audit may be required if:

  • You are publicly traded
  • You are considering going public
  • A lender requires one as a condition of the loan
  • You anticipate purchasing a business or selling your company
  • You receive federal funds and want to preserve integrity ·
  • There are absentee owners that need assurance of the company operations

An Audit allows you to:

  • Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information · 
  • Facilitate the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations
  • Comply with banking covenants
  • Help deter and detect material fraud and error
  • Facilitate the purchase and sale of businesses

Audits: Not Just for Public Entities


All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies and other organizations receiving government grants. Moreover, many financial institutions require audits of nonpublic companies based on the financing amount and/or the bank’s assessment of the company’s risk. Finally, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits to check on their management teams.   

Financial Statement Reviews

Limited Assurance
 

If a full audit is not required, we can provide review services on financial statements. Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company’s management team. In a review, inquiries and analytical procedures are conducted, providing limited assurance that no material modifications should be made to the financial statements in order for the statements to be in conformity with GAAP or other applicable financial reporting framework.


If you need a closer examination of your books, but an audit is not required, and a compilation is not thorough enough, you should consider a review. A review is a mid-level assessment performed by an independent accountant (*sometimes not your current CPA). Responsibilities and the results of the engagement are communicated in our review report. Although review procedures are much less in-depth than audit procedures, we use our knowledge of your industry to identify and share our recommendations to improve the results of your operations.


In a review, the CPA designs and performs analytical procedures, inquiries, and other procedures, as appropriate, based on the accountant’s understanding of the industry, his or her knowledge of the client, and his or her awareness of the risk that he or she may unknowingly fail to modify the accountant’s review report on financial statements that are materially misstated. A review does not contemplate obtaining an understanding of the entity’s internal control; assessing fraud risk; testing accounting records; or other procedures ordinarily performed in an audit.

The CPA issues a report stating the review was performed in accordance with Statements on Standards for Accounting and Review Services; that management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements; that a review includes primarily applying analytical procedures to management’s financial data and making inquiries of management; that a review is substantially less in scope than an audit and that the CPA is not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with the applicable financial reporting framework.



Why might a business request a review engagement?

It can be a good middle ground, providing the advantages of a CPA’s technical expertise without the work and expense of an audit.  

Financial Statement Compilations

Lowest Level of Assurance (None) 


Compilation services are offered to assist your accounting department in the preparation of your financial statements in accordance with professional standards. A compilation involves obtaining information from management in an effort to prepare financial statements without expressing any assurance that the statements are fairly presented or about the underlying information in the statements.

The objective of a compilation of financial statements is to assist management in presenting financial information in the form of financial statements without providing any assurance that there are no material modifications that should be made to the financial statements.

We improve the quality of the compiled financial information by helping clients present it in accordance with GAAP, another comprehensive basis of accounting (OCBOA), or other applicable reporting framework. Although our report does not explicitly provide assurance, the fact we assisted helps provide assurance to decision makers.

The compilation, by formatting information in a standard format, allows you to evaluate your company’s performance and allows us to highlight and recommend ways to enhance your organization’s operations.

  • Compiled financial statements represent the most basic level of service CPAs provide with respect to financial statements.
     
  • In a compilation engagement, the accountant assists management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements.

  • In a compilation, the CPA must comply with Statements on Standards for Accounting and Review Services (SSARSs) which requires the accountant to have an understanding of the industry in which the client operates, obtain knowledge about the client, and read the financial statements and consider whether such financial statements appear appropriate in form and free from obvious material errors.

  • A compilation does not contemplate performing inquiry, analytical procedures, or other procedures ordinarily performed in a review; or obtaining an understanding of the entity’s internal control; assessing fraud risk; or testing of accounting records; or other procedures ordinarily performed in an audit.

  • The CPA issues a report stating the compilation was performed in accordance with Statements on Standards for Accounting and Review Services; and that the accountant has not audited or reviewed the financial statements and accordingly does not express an opinion or provide any assurance about whether the financial statements are in accordance with the applicable financial reporting framework.

  • In compiling financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the statements. Compilations don’t require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.

Banks often require compilations from an independent CPA as part of their lending covenants.  

Bookkeeping and Basic Statement Preparation

Meaningful, well-organized financial records ensure that your business operations will run more efficiently on a daily basis and are the foundation of a successful business. 

Our qualified staff can assist you with the day-to-day tasks associated with bookkeeping.   
We can assist you in the preparation of your financial statements in accordance with professional standards, but express no opinion or any other form of assurance on the underlying information included in them. The financial statements produced can be a useful tool for management for making financial decisions.   

As a business owner you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits.

Each month or quarter you will receive:

  • Reconciled bank accounts
  • Generated Income Statement
  • Generated Balance Sheet
  • Clean General Ledger
  • Any needed consultation

These tasks form the solid foundation of a small business accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.


Bank Reconciliation

Reconciling your business checking account each month allow us to keep your bank account, accounting, and taxes up-to-date.

Reconciliation each month is important.  It allows you and your businesses to:

  • Identify lost checks, lost deposits and unauthorized wire transactions.
  • Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
  • Detect and prevent embezzlement of funds from within your company.
  • Know how your business is doing? You can’t really know unless all accounts are reconciled and properly accounted for on your financial statement.
  • Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.
  • Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
  • Sleep better, it just happens. You will sleep more peacefully at night knowing your bank accounts are reconciled, in-balance and that properly accounted for are all escrowed funds, payables and receivables, checks and disbursed funds.

Income Statement 


An income statement, otherwise known as a profit and loss statement, basically combines an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.

An income statement allows you to:

  • Track revenues and expenses so that you can determine the operating performance of your business.
  • Determine what areas of your business are over-budget or under-budget.
  • Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.
  • Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
  • Determine your income tax liability.

Balance Sheet

A balance sheet gives you a snapshot of your business’ financial condition at a specific moment in time.

A balance sheet helps you:

  • Quickly get a handle on the financial strength and capabilities of your business.
  • Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively.
  • Determine if your business is in a position to expand.
  • Determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses.
  • Determine if you need to take immediate steps to bolster cash reserves.
  • Determine if your business has been slowing down payables to forestall an inevitable cash shortage.

Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

Maintaining a Clean General Ledger

The general ledger is the core of your company’s financial records. These records constitute the central “books” of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.

Having us review your general ledger system each month allows us to hunt down any discrepancies such as double billings or any unrecorded payments. Then we’ll fix the discrepancies so your books are always accurate and kept in tip top shape.  

Payroll Preparation & Payroll Tax

As a business grows, it must hire more employees, which can result in increased payroll administration. We can assist you in implementing the controls necessary to ensure a reliable, efficient, and effective payroll system. Our firm can also help you develop a payroll system and prepare all necessary payroll tax returns in a timely manner.  


When it comes to paying employees, laws and the IRS have made the payroll function a time consuming nightmare for the small business owner.

Small business owners spend an average of eight hours a month performing payroll functions. That’s 12 full days a year that could be spent generating sales, prospecting new business opportunities, improving products or services, or servicing customers.

We offer payroll solutions that meet your business’s needs and enable you to spend time doing what you do best–running your company.

Why Outsource Your Payroll:

  • It’s Cost Effective - Use your staff more efficiently by letting us handle payroll and the associated legal details. Reduce overhead by removing the need to hire specialized employees.
  • It’s a Time Saver - Our payroll service eliminates the burden of customizing, updating and maintaining your own payroll system–no more data entry, no more researching updates or new laws, no more worries.
  • Worry Free Payroll Tax Filing - Eliminate the risks of calculating and filing your own payroll taxes by having professionals do it for you. Federal, state and local payroll tax laws are frequently changing and becoming more complex. How much time do you want to spend learning all the rules and keeping your information up to date? 
  • Allows You To Focus On Core Competencies - Our professional staff allow you to focus on the core competencies of your business. We are accounting professionals–you get the experts working for you and with you.
  • Comprehensive Reports - You get a wide variety of user-friendly and accurate payroll reports. For a nominal fee, we will include union reports, certified payroll, workers’ compensation reports and much more.  

Get the Payroll Solution That Best Fits Your Needs.

We know that when it comes to payroll service – no one size fits all. That’s why we offer the following 3 custom payroll processing options.

1.  Comprehensive Payroll Services
    

Our Comprehensive Payroll Service takes care of all of the payroll processing for you, so that you won’t have to. You get:

  • Your payroll checks prepared and printed on-time, every-time.
  • All of your payroll checks are laser printed on “blank” check stock to ensure maximum security and meet the micro encoding standards as set forth by the Federal Reserve System.
  • Free Direct Deposits.
  • Worry Free IRS and State tax reporting as well as EFTPS tax deposits.
  • User friendly, and easy to understand monthly, quarterly, and annual payroll tax reports, including W-2, W-3 and 1099 forms.
  • Detailed reports on your employee’s vacation, sick days, and personal days accruals.
  • Creation and filing of the required new hire reports.
  • Your payroll records maintained in tip top shape.

2. After-the-Fact-Payroll Services

We will take your manually-prepared payroll records and other payroll information and post this information to our data files, so you get:

  • Worry Free IRS and State tax reporting as well as EFTPS tax deposits.
  • User friendly, and easy to understand monthly, quarterly, and annual payroll tax reports, including W-2, W-3 and 1099 forms.
  • Creation and filing of the required new hire reports.
  • Detailed reports on your employee’s vacation, sick days, and personal days accruals.
  • Your payroll records maintained in tip top shape.

3. Online Payroll Processing

You can enter your employee’s online or e-mail us and get:

  • The ability to instantly print payroll checks on your own printer.
  • Free Direct Deposits.
  • Worry Free IRS and State tax reporting as well as EFTPS tax deposits.
  • User friendly, and easy to understand monthly, quarterly, and annual payroll tax reports, including W-2, W-3 and 1099 forms.
  • Detailed reports on your employee’s vacation, sick days, and personal days accruals.
  • Creation and filing of the required new hire reports.
  • Your payroll records maintained in tip top shape.

Custom Payroll Reports Service   

There seems to be an endless amount of special reports Government agencies require. We can prepare the following reports for you.

  • Worker’s Compensation Audits
  • Unemployment Claims
  • Social Security Audits
  • Child Support Audits
  • W-2 and W-3 processing
  • 1099 and 1096 processing
  • Preparation/assistance with Federal and State registration forms

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HetslerCPAs

2 Embarcadero Center, 8th Floor, San Francisco, CA 94111

Tel: 415.576.1040

Hours

 Monday - Saturday: 8am - 6pm

Sunday: Closed