Enterprises with credit facilities supported by accounts receivable and inventory are required to complete their financial statements following Generally Accepted Accounting Principles (GAAP). The financial statements are typically required to be audited or reviewed by an independent CPA. Additionally, the lender requires compliance with various financial covenants such as minimum profitability, cash flow coverage, debt to equity ratio and tangible net worth.
We can assist in implementing appropriate accounting and reporting procedures to produce financial statements using GAAP. Procedures to monitor covenants can be established to alert management of potential compliance issues. Preparation of monthly financial statements is an essential step to compliance.
The foundation of schedules for an audit or review is the support behind the monthly financial statements. We assist clients with this arduous process in a timely manner to ensure the process completes as quickly as possible.
If your company is considering a credit facility we can help build the necessary foundation – the monthly financial statements and supporting schedules – to assist in the loan application process. We can also assist with renewals of existing facilities. Give us a call to discuss your goals and needs.