Statement of Financial Condition

Financial Statements That Help You See—and Prove—Where Your Business Stands

Fiotax helps small businesses turn accounting records into clear, professional financial statements for owners, lenders, investors, landlords, partners, and tax planning.

Serving businesses in New York and beyond with practical accounting and financial reporting support.

Why financial statements matter

Financial statements translate day-to-day business activity into a usable financial picture. They can help you:

• Understand profitability rather than relying solely on your bank balance
• Track cash, receivables, debt, and operating expenses
• Prepare for loan, line-of-credit, equipment-financing, or lease applications
• Support conversations with partners, buyers, investors, and landlords
• Identify trends before they become costly problems
• Make better decisions about pricing, payroll, hiring, inventory, and growth
• Maintain organized records for tax planning and return preparation

Your books should do more than create a year-end tax return. Fiotax helps you convert financial data into reports you can use to manage the business, respond to third-party requests, and plan with greater confidence.

Our financial statement process

1. Initial consultation and purpose review

We begin by understanding why you need financial statements and who will use them.

During the consultation, we discuss:

• Your entity type and industry
• Your accounting system and current bookkeeping process
• The reporting period needed: monthly, quarterly, annual, or year-to-date
• Whether the statements are for internal management, taxes, a lender, a landlord, a buyer, or another third party
• Any lender or outside-party requirements
• Whether an assurance engagement may be required

Before preparing reports, we identify the purpose behind them. A business owner seeking monthly visibility may need something very different from a company applying for financing or responding to a lender’s report request.

2. Records collection and secure onboarding

Fiotax gathers the records needed to understand the financial activity of the business.

Depending on your business, this may include:

• Prior-year financial statements and tax returns
• Bank and credit-card statements
• Accounting software access or reports
• General ledger and trial balance
• Accounts receivable and accounts payable aging reports
• Loan, lease, and financing statements
• Payroll reports
• Inventory records, when applicable
• Fixed-asset purchases and depreciation information
• Owner distributions, shareholder activity, and capital contributions
• Major contracts, unusual transactions, and related-party activity

We provide a practical document checklist so you know what to send, why it matters, and what may still be needed. Our goal is to make the process organized—not overwhelming.

3. Bookkeeping review and account reconciliation

Reliable financial statements begin with reliable underlying books. We review the available accounting records and identify information that needs clarification, cleanup, reconciliation, or adjustment.

This stage may include:

• Reconciling bank and credit-card activity
• Reviewing income and expense classifications
• Identifying duplicate, missing, or uncategorized transactions
• Reviewing accounts receivable and unpaid invoices
• Reviewing accounts payable, vendor balances, and accrued expenses
• Separating personal and business activity where necessary
• Reviewing loans, owner draws, equity activity, and intercompany transactions
• Identifying transactions that may affect tax treatment or financial reporting

Clean financial statements are built on clean books. If records need attention, Fiotax can identify the gaps and recommend the appropriate bookkeeping cleanup or catch-up work before final reporting is issued.

4. Adjustments and year-end accounting

After reviewing the records, we evaluate whether adjusting entries are needed so the financial statements more clearly reflect the company’s financial position and results for the period.

Adjustments may involve:

• Depreciation and amortization
• Accrued expenses and unpaid liabilities
• Prepaid expenses
• Loan interest and principal classification
• Payroll liabilities
• Inventory or cost-of-goods-sold adjustments
• Revenue and expense cutoffs
• Owner compensation, distributions, and equity entries
• Tax-related adjustments and reconciliations
• Reclassifications needed for clearer presentation

The goal is not simply to print reports from software. It is to present financial information in a format that is understandable, consistent, and appropriate for the intended use.

5. Financial statement preparation

Fiotax prepares the core reports needed to evaluate the business.

Depending on the engagement, your reporting package may include:

Statement - What it shows - Why it matters

Balance Sheet

1. Assets, liabilities, and owner’s equity at a specific date

• Shows what the business owns, owes, and has built

Profit & Loss Statement

1. Revenue, cost of sales, expenses, and net income over a period

• Shows operational performance and profitability

Statement of Cash Flows

1. Cash movement from operations, investing, and financing activity

• Explains why profit and cash may differ

Statement of Changes in Equity

1. Changes in ownership, capital contributions, distributions, and retained earnings

• Useful for corporations, partnerships, and multi-owner entities

Supporting Schedules

1. Detail behind receivables, payables, fixed assets, debt, or other key balances

• Helps lenders, owners, and advisors understand the numbers

We prepare financial statements that make the story behind your numbers easier to understand—where revenue came from, what expenses are driving results, what obligations are outstanding, and how the business is positioned going forward.

6. Delivery, explanation, and next-step planning

Once the reports are complete, Fiotax delivers the financial statement package and helps you understand the key takeaways.

Our review discussion may cover:

• Profitability trends and margin changes
• Cash-flow concerns and working-capital needs
• Outstanding receivables and unpaid obligations
• Debt levels and upcoming payments
• Expense categories that deserve attention
• Business and tax planning opportunities
• Records or processes to improve for the next reporting period
• Whether a lender, buyer, or other third party may require a different level of CPA service

We do not simply hand you a report and move on. We help you understand what the financial statements are saying so you can make informed business decisions.

Choose the appropriate service

A major trust-building section should make clear that not every situation requires the same type of financial statement engagement.

Service - Best for - What Fiotax does - Level of assurance

Financial statement preparation

1. Internal reporting, business management, tax planning, owner use
2. Prepares financial statements from available accounting information
3. No assurance

Compilation

1. Businesses that need financial statements accompanied by a compilation report
2. Presents management’s financial information in financial statement form under a compilation engagement
3. No assurance

Disclaimer:

The right service depends on the intended use of the financial statements and the requirements of the requesting party. Fiotax will help you determine what is appropriate before work begins. Engagement availability is subject to scope, independence, professional standards, and applicable licensing requirements.

AICPA guidance separately recognizes financial statement preparation, compilation engagements, and review engagements under the SSARS framework.

Who we help

Business owners

You need dependable reports to understand performance, manage cash, plan taxes, and make decisions with less guesswork.

Businesses seeking financing

A lender may request current or year-end financial statements, tax returns, debt schedules, and—in some cases—a specific CPA report. We help you understand the request and organize the information needed.

Growing companies

As revenue, payroll, inventory, borrowing, or the number of owners grows, timely financial reporting becomes more important. Fiotax can help create a recurring monthly, quarterly, or annual reporting process.

Buyers, sellers, and partners

Clear historical statements can support due diligence, business valuation discussions, ownership changes, and conversations with prospective investors or purchasers.

Landlords and vendors

Financial statements may help support lease applications, credit requests, vendor relationships, and other business commitments.

Frequently Asked Questions:

What documents do I need to get started?

Usually, we need access to your accounting records or a general ledger, bank and credit-card statements, prior returns or prior-year financial statements, debt information, payroll reports, and detail on significant business transactions. The exact checklist depends on the business and the purpose of the statements.

How often should my business receive financial statements?

Many businesses benefit from monthly financial statements, especially when they have employees, inventory, financing, multiple owners, or changing cash-flow needs. Smaller or less active businesses may need quarterly or annual reporting. The best cadence depends on how you use the information.

Are financial statements the same as a tax return?

No. A tax return reports information under tax rules. Financial statements report the financial condition and operating results of a business for a period. While the two are connected, they serve different purposes and may require different classifications or adjustments.

Will a lender accept prepared financial statements?

It depends entirely on the lender and the financing request. Some lenders accept internally prepared or CPA-prepared statements; others may require a compilation, review, audit, personal financial statement, or other specific documentation. Ask the lender for its written requirements before ordering a service.

What is the difference between a compilation and a review?

A compilation presents financial information without providing assurance. A review involves inquiries and analytical procedures and provides limited assurance; independence is required for a review.

Can Fiotax help if my books are behind?

Yes. If your records need cleanup, categorization, or reconciliation, Fiotax can first evaluate the condition of the books and recommend the appropriate catch-up work before preparing the financial statements.

Disclaimer:

Financial statement preparation services are provided for management-use purposes and are based on information supplied by the client. Unless otherwise expressly stated in a written engagement letter, Fiotax Inc. does not audit, review, or perform other assurance services on the financial information and does not express an opinion, conclusion, or other form of assurance regarding the financial statements. Management remains responsible for the accuracy and completeness of the records and for the financial statements’ use and distribution. Financial statements prepared by Fiotax Inc. may not be suitable for third-party reliance, including use by lenders, investors, regulators, or other external parties, without prior written approval and an appropriate engagement.