General Ledger & Financial Statement Preparation

The preparation of financial statements requires a critical eye in organizing and aggregating all of your accounting information into a set of standardized financials. Once complete, these statements are given to management, lenders, creditors, and investors to evaluate the performance of the business, including liquidity and cash flows, so accuracy is critical.

At Godbold & Romanov CPAs, the steps we take to prepare your ledger and financial statements are:

1. Check and compare the receiving log to accounts payable to verify that supplier invoices and customer invoices have been correctly received and issued.
2. Accrue an expense for any wages that were earned, but unpaid at the end of the reporting period.
3. Calculate depreciation and amortization expenses for all fixed assets recorded in the accounting.
4. Take inventory to estimate the ending inventory balance.
5. Run a bank account reconciliation to create journal entries and record adjustments to match bank statements.
6. Post account balances and review the balance sheet accounts.
7. Review the financial statements and review them for errors.
8. Based on the corrected income statement, accrue income taxes.
9. Close accounts and open a new account for the next period.
10.  Print a final version of the financial statements.