Virtual Chief Financial Officer/Controller for Your Business
The below is a sample letter we might send to a client to help them get ready for the year end to ensure that their internal books and records are correct before filing their tax return. Working with a Virtual CFO/Chief Financial Officer is a good alternative to ensure that your business gets all the valued consulting time that it needs without the burden of a full time salary:
Below please find critiques to your December internal financial statements. Please do not hesitate to call should you have any questions:
Please break out the credit card charges in office supplies to the respective items were paid for.
Please review and advise if there were any fixed assets in Office Supplies over a $1000 and what the item was for and re-class accordingly.
Statement for the Mortgage does not reconcile to the statement. Please review/advise/correct.
Please forward copies of the bank statement and reconciliation.
On your bank accounts please review the outstanding checks and ensure that they are still valid.
Please review the $1,000 in the Prepaid account on the Balance Sheet as I recall that was to be expensed this month. Please review/advise.
Please verify that/if the money in Taxes & Licenses is for your office building.
The roll forward net income sheet is not correct/does not roll forward.
Please be reminded that tax law requires an S Corporation active employee owners to pay a fair and reasonable salary given position and profit. The best test/indication of what this salary would be would be indicated by what an active employee owner would have to pay someone else to perform their duties. Please keep this in mind as you process your payroll while keeping in mind that your internal financials are prepared on an accrual basis while your tax return is prepared on a cash basis.
I am going to update the monthly checklist of items for you to do when forwarding me the monthly internal financials for the below items. Please be sure to use this new checklist when compiling data for forwarding.
Please be sure that you review all charges for Direct Labor Costs over $10,000 each to see ensure that all costs are charged to the right period for job costing purposes.
Please review all fixed asset accounts and forward along with the information detail of what those items are so that I might add them to the detailed fixed asset list.
Please review the list of open and outstanding checks especially the older and the larger ones to ensure that only valid open and outstanding checks remain listed.
John Dillard is an author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (a Christian CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey “Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” Call us today for a free initial consultation.
We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.
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