Services Provided by Denman & Associates

Small Business Accounting Services (Bookkeeping) | Tax Compliance & Planning | Financial Statement Preparation | Payroll Preparation | Business Advisory and Consulting Services

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1. Small Business Accounting Services (Bookkeeping) – As a small business owner, you have too little time as it is, so why add the extra stress of maintaining your books.  Our services allow business owners and key employees more time to serve your clients, grow your business, and spend more time with family and friends.

On a monthly basis we will perform the following services for you:

1. Reconcile your bank account
2. Generate Balance Sheet
3. Generate Income Statement
4. Generate Cash Flow Statement
5. Monitor / project your tax situation

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1. Bank Reconciliation – Reconciling your business bank account each month allows you to:

• Identify outstanding checks, missing deposits, and unauthorized transactions
• Prevents unnecessary bank charges such as NSF fees
• Ensures transactions are correctly posted
• Effective management of cash flow
• Provides an extra layer of protection for the owner by ensuring that only properly authorized transactions are taking place

2. Balance Sheet – Provides you with a snapshot of your business at a specific moment in time.  The balance sheet will help you:

• Assess the financial strength of your business
• Track and analyze your accounts receivable, inventory, cash balances, and accounts payable
• Compare your assets to your liabilities
• Assist lenders in determining financing terms

3. Income Statement – Also known as a profit and loss statement or statement of operations, categorizes your income and then subtracts your property categorized expenses to arrive at your net profit for a period.  The income statement will help you:

• Track revenues and expenses so you can determine the performance of your business
• Prepare budgets and track performance
• Identify items that are causing unexpected fluctuations in profit
• Compare your results with industry benchmarking
• Determine income tax liability

4. Statement of Cash Flows – Provides you with a summary of how you received your cash and how it was spent.  The cash flow statement will help you:

• Determine if your cash flow is sufficient to cover new or existing debt service
• Determine if you should pay cash for or finance a large asset equipment purchase
• Determine if you have the capacity to expand
• Analyze the sources and uses of cash

5. Monitor Your Tax Situation – As a small business owner your personal tax situation is directly tied to the performance of your business.  By monitoring your situation, we assist with:

• Projecting estimated tax liability for the year
• Calculating estimated tax payments for federal and state
• Implementing tax saving strategies

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2. Tax Compliance & Planning – With an ever changing set of tax law and regulation, it is a great benefit to have a tax professional handle your needs.  We provide the following tax compliance services

    

   1. Corporate Tax Return Preparation (Form 1120 & 1120S)– We are very knowledgeable in the preparation of both regular corporations and Subchapter S Corporations.  We are fully aware of how both of these business interact with their owners and how to properly prepare and present the returns to the IRS.
   2. Partnership Tax Return Preparation (Form 1065)– For federal tax purposes an LLC is usually taxed as a partnership.  This form of business has become prevalent with the boom in the real estate market.  We have extensive experience preparing real estate partnerships as well as operating partnerships.
   3. Individual Tax Return Preparation (Form 1040) – No return is too large or too small for us to prepare. Why spend an entire weekend at the kitchen table working on your personal tax return?  We have the knowledge and experience to answer your questions and prepare your return in a prompt professional manner
   4. Sales Tax –Many states and local jurisdictions require businesses to pay the sales tax on a monthly basis.  We will prepare these returns for you.
   5. Franchise Tax Return – Most states impose a franchise tax on business structures in their state.  These taxes may run from $100 per year to several thousand per year depending on the state.  It is critical these are correctly calculated and timely paid in order to keep your business in good standing with the state

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In additional to tax compliance, we offer a full range of tax planning services.  Tax planning is used as a preemptive step to plan transactions and assess your situation before the end of the year and implement a plan to reduce your tax liability.  Some of the common tax planning areas we cover are:

• Charitable giving
• Equipment purchases
• Bonuses
• Business structure and reorganization
• Evaluation of withholding allowances
• Fringe benefit plans
• Tax impact of stock sales
• Tax impact of stock options
• Section 1031 like kind exchanges of real estate
• Tax Projections
• Retirement plan contributions

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3. Financial Statement Preparation – Many times business are required to submit formal financial statements to a third party as part of licensing or for debt covenants with lenders.  We routinely work in the following areas:

• Compiled Personal Financial Statements – We prepare personal financial statements from data you will provide to us.  We will summarize your business data if you own a business and calculate your deferred tax liability. 

• Compiled Financial Statements – We will prepare the financial statements based on data obtained from management.  We will prepare a Balance Sheet, Income Statement, Cash Flow Statement, and any required disclosures.  This form of financial statement works well for residential construction contractors and business providing financial data to their lending institution.

• Reviewed Financial Statements – We will prepare financial statements after we perform analytical procedures on the data management provides.  A review offers a higher level of assurance on the financial statements than a compilation. We will prepare a Balance Sheet, Income Statement, Statement of Cash Flows, Statement of Retained Earnings, and any applicable disclosures and supporting schedules.  This form of financial statement is very common in the commercial construction industry.

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4. Payroll Preparation – We believe that outsourcing your payroll is more cost efficient and beneficial than preparing it in house.  Most CPA firms prepare monthly reports and deposit coupons for their clients and charge a very high rate.  We feel in order for a client to gain the full benefits of outsourcing, they need to use a full service payroll provider.  In addition to our accounting firm we operate a full service payroll provider known as Millennium Payroll.  Please take a moment to visit their website to see the array of services we can provide.

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5. Business Advisory and Consulting Services – There are many aspects of operating a business that do not fall under tax planning or financial statement preparation, but are very important.  These services surround more of the day-to-day operations of your business. 

• Business Acquisition – When looking to acquire a new business it is vital that you perform ample due diligence on the business.  We can assist in determining the potential compensation to the new owner, how much debt you can support, and assist with different growth and expense scenarios.

• Assist in Obtaining financing Packages – As your business expands or you acquire a new business, it may be necessary to obtain financing to fuel the growth or acquire the business.  We can help you determine the level of debt the business can support.  In addition we can work with you on preparing bank and SBA loan applications.  It also may be necessary to prepare a business or personal financial statement for the lender.

• New Business Start-Up – Starting a business from ground zero can be a difficult process.  With our experience, we can help you avoid common mistakes, prepare realistic operating budgets, and examine the tax consequences of your business entity.

• Business Entity Options – Choosing the correct business entity is something that should be done with both your CPA and legal counsel.  We can assist by explaining the tax benefits and pitfalls of each business structure.

• Sale of an Existing Business – You have grown your business and are ready to put it for sale.  We will work with you to help ensure you structure your transaction in a method that will limit your tax exposure and keep more cash in your pocket.

• Employee Benefit Plans – Now that you have the right mix of employees to make your business grow, will you be able to keep them?  Competition for key employees continues to be fierce and an Employee Benefit Plan is a key way to help retain and reward your employees.  Some portions of a good Employee Benefit Plan may actually save the company money while providing benefits to the employee.

• Budget Operations – Preparing a functional budget is a key component of success because it provides you a financial roadmap for your business and for you personally.  We work with both businesses and individuals to prepare budgets and can offer accounting services to help employees track their progress along the budgets.

• Accounting System Training – We are very experienced with QuickBooks and routinely go to client sites to help train employees to better use the product and to correct errors in their statements. 

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