SERVICES
ACCOUNTING
Our accounting services range from bookkeeping including the processing of all
business transactions to prepare the following monthly, quarterly and year end
reports: balance sheet, income statement, general ledger, and bank
reconciliations. Also, our firm can maintain the subsidiaries of accounts
receivables and payable, if necessary.
It does not matter the size of our clients’ businesses or the tasks to be performed,
our objective is to be responsible to our clients’ needs and situations.
We will be available on a monthly basis to explain you to interpret and utilize the
financial information we provide in adjustments to your business and/or personal
operations.
PAYROLL AND PAYROLL TAXES
The payroll services include the following tasks:
Preparation of payroll with related checks and/or direct deposits to
employees for the period established by the client.
IRS tax returns including EFTPS tax deposits within applicable periods.
Quarterly unemployment and disability state tax returns.
Monthly payments of income tax withheld from employees
Preparation of monthly, quarterly, and annual payroll tax reports including
the W-2, W-3 and all related forms to be filed.
We will prepare all required payroll journal entries to be included in the
accounting of the firm. In addition, we include the Workmen’s compensation
insurance return.
REVIEWS AND COMPILATIONS
Our staff focuses on delivering the right level of assurance when conducting
compilations and reviews. We work with our clients to present financial
statements that offer the appropriate and necessary level of credibility and
confidence for other important business partners, creditors, vendors, and lenders.
The result of the applicable related procedures is a review/compilation report
issued in accordance with the Statement on Standards for Accounting and Review
Services issued by the American Institute of Certified Public Accountants. In
addition, and most important, the concerns and needs of your business partners
and related operating creditors, vendors and lenders will be satisfied, allowing
your business to move forward.
Reviews
Our review service for your company’s financial statements evaluates the same
using inquiries to management personnel, analytical procedures and knowledge
of your business and industry practices. While the scope of the engagement is less
intrusive than an audit, the resulting report provides a limited assurance
establishing that not material modifications need to be made to financial
statements to be free of material misstatements.
Compilations
Our compilation service procedures is to obtain financial data from your
accounting records to present in the form of financial statements. In a
compilation, we do not express any opinion in the accuracy of the information
presented in the financial statements; the compilation has the lowest level of
assurance, but clients benefit from having their financial statements presented by
an external and independent certified public accountant.
AUDITS OF FINANCIAL STATEMENTS
The audit service includes the examination of an entity’s financial statements and
accompanying disclosures by an independent auditor. The result of this
examination is a report by the auditor attesting to the fair presentation of
financial statements and related disclosures.
In an audit we prepare a plan including possible risks assessments and set the
materiality. Then we review internal controls understanding and validating its. In
addition, we make a substantive review on financial data using audit sampling
technique to test the level of risks in the engagement.
Common audit procedures that the auditor uses in this process is the analytical
review, inquiry, observation, recalculation, and external confirmations. Also
supporting documents should be inspected including contracts, invoices, receipts,
bank statements and other related documents.
Once we complete all the necessary testing, we will issue a report based on the
results of the audit procedures and processes.
AGREED-UPON PROCEDURES
In this service we are engaged by a client to perform specific procedures and
report findings to conform your needs. Our firm will provide a report based on
factual findings regarding financial information – no assurance is expressed. The
report is not distributed publicly – it is restricted to those parties that have agreed
to the procedures. The client engages my firm to assist specified parties in
evaluating subject matter because of a need or needs of specified parties.
Because those needs of the specified parties may vary widely in nature, the timing
and the extent of the agreed-upon procedures may vary as well; consequently,
the specified parties assume responsibility for the sufficiency of the procedures
since they understand their own needs. Our report on agreed-upon procedures
should be in the form of procedures and findings.
Our firm has been working with agreed-upon procedures with the Education
Department of PR and subcontractors.
Also, the Secretary of the Treasury in Puerto Rico (“Secretario de Hacienda”)
issued “Carta Circular 19-14” in which establishes a report for agreed-upon
procedures and Compliance Attestation. This report should be prepared by an
independent certified public accountant with a license in force in PR. In the case
of self-employed individuals, the certified public accountant will inspect and
confirm the expenses incurred to obtain related revenues. This is a requirement
for those expenses to be deductible for the alternate basic tax in the same
manner to determine net income to regular tax. In the case of corporations must
submit the Certified Public Accountant Agreed-upon Procedures Report to claim
the same deductions submitted for the alternative minimum tax and regular tax.
FINANCIAL FORECASTS AND PROJECTIONS
To reach your goals, you must have an accurate vision of the future. You
must also be able to predict the financial impact of planned and unplanned
variables in your business. From simple projections to complex financial
models, we are here to answer your most critical financial questions.
Financial Forecasts are financial statements built to reflect what your
company’s financial standing will be in the future, given that all variables
stay on their normal or expected course of action.
Financial Projections are used to test one or more hypothetical situations
and present an entity’s expected financial position, results of operations,
and cash flows.
Depending on your objectives and needs, we provide several types of
financial forecasts and projections.
Cash Flow
A cash flow projects the amount of cash that will flow in and out of your
business, including where it goes and when it is received or spent. Our cash
flow forecasts typically cover the next 12 months, but the timeframe can
also be reduced or extended. We use cash flow projections to determine
when your cash flow will be positive and/or negative which can help you to
strategically schedule purchases, expenses, and the use of lines of credits, if
available.
Sales Forecast
A sales forecast or projection is used to estimate future sales. Accurately
forecasting your sales is a critical component of effectively managing your
resources, inventory, human capital, and cash flow. To create sales
forecasts for established companies, we heavily rely on historical data and
market conditions. For newer companies, we must also look at external
information, such as market research and economic trends.
TAX RETURNS PREPARATION
Our Firm provides the service necessary to prepare electronically the following tax
returns:
Personal income tax returns
Corporation income tax return
Annual Report Department of State
Property tax return
Municipal tax return
Sales and Use tax return
All tax returns are filed with all the necessary supporting documents and
schedules required.
FINANCIAL PLANNING
We use our expertise to accomplish your financial long-term goals. You will
guidance and a comprehensive plan that helps manage risks, improve
performance, and ensure the growth and longevity of your financial future.
We also believe that the best way to maximize tax savings and increase cash flow
is through ongoing tax and operational planning conducted throughout the year.
Our approach is to maintain continued contact with our clients allowing us to
receive timely information to utilize all possible opportunities and alternatives.
CREATION OF NEW BUSINESS
In this area we prepare an initial business plan to identify your management,
marketing, and financial plans. In addition, we identify the type of organization
recommended for the new business by evaluating tax advantages, legal exposure,
and ease of operation.
After the initial plan is detailed, we proceed with the following steps if necessary:
Determine your start-up capital needs.
Identify sources for initial capital.
Evaluate any bank financing, if needed.
Select the corresponding accounting software based on hardware, budget
and needs. If not, recommend outsourcing.
Prepare Cash Flow Forecast for the first two years to establish expected
revenues, disbursements, and the use of funds.
Establish internal controls and procedures to monitor and control costs.
Prepare and file requires state licenses and permits.
File with IRS the Federal Employer Identification Number.
Identify insurance needs.
Provide the necessary tools to handle payroll and related taxes.
After we have completed all the initial steps established your Company will be in
a strong position to begin operations.
LOAN PROPOSALS FOR BANK AND SBA’S PPP – EIDL APPLICATIONS
Our service in this area is to prepare an Executive Summary for a loan request
establishing the purpose, the amount of money required and a detailed
explanation of the operational needs for the funds obtained and related use.
We will prepare Pro-Forma Cash Flow including the probable effect of the proceeds
of the loan in the Company’s operations. We use your financial data and underlying
assumptions to prepare reports to confirm your ability to pay back the related
funds. Also, we can identify the collateral, if any, pledged as security for the Loan.
We will be able to represent you in the presentation and explanation of your Loan
proposal to the bank or other financial entities.
Our office has been involved to the SBA PPP I requirements and Loan Forgiveness
procedures. Also, we have experience completing Applications for SBA Emergency
Injury Disaster Loans.
INTERNAL CONTROLS EVALUATION
Our firm evaluates and assess your Company’s internal control systems to
ascertain the efficiency and the effectiveness of your operating procedures. We
design compliance tests to obtain the necessary evidence to correct, when
necessary, procedures not effective for the business operations.
In this area we make recommendations to help your company to establish the
following controls when not implemented:
Segregation of duties properly distributed among different employees to
reduce errors or inappropriate actions.
Approval of transactions by authorized personnel established by
management.
Ensure records are routinely reviewed and reconciled by someone other
than the preparer to determine that transactions have been properly
processed.
Make sure that cash equipment, inventories, vehicles, and other property
are secured properly, counted periodically, and compared with control
records.
Provide training and guidance to employees about their positions.
Document established policies and procedures.
When the evaluation of internal controls is completed, the company’s operations
will include the appropriate systems in place to ensure proper handling of the
resources and protect against possible fraud.
LITIGATION SUPPORT
Our firm has the experience of working with lawyers in the litigation support area.
In the corporate world, disputes between businesses arise. In most cases, these
issues can be easily resolved. However, in few instances, it becomes necessary to
manage the dispute through legal channels. In such cases, the advice of a certified
public accountant, versed in the legalities of commercial disputes, could be
essential.
Litigation support is one of the most common reasons to hire an accountant to
become familiar with the commercial disputes providing consultation and advice
to attorneys. The kind of support provided by our firm can vary significantly from
case to case. In some circumstances, the advice might mean assistance during
research or the provision of relevant facts and documentation, while in others it
might entail determining the extent of damages once the case has been tried.
In such cases, our firm can aid with settlement discussions or in obtaining
documentation to support a legal claim. We can also provide crucial support in
the early stages of a legal dispute by conducting reviews of relevant
documentation to form an initial assessment of the case, or by aiding in the
discovery proceedings by helping to formulate key questions regarding the
financial evidence.
If a dispute arises, our litigation support can be a vital tool for achieving your
desired outcome. Our investigatory experience permits to provide in-depth
analysis of financial data relevant to the dispute at hand.
Our work in this area can be useful in several legal scenarios including
assessments of economic damages, post-acquisitions disputes and fraud
detection. We can also provide support to legal counsel in the form of provision
and analysis of relevant documentation and input into settlement negotiations.
SPECIALIZED INDUSTRIES
This office has experience working with the accounting and consulting services
related to the operation and internal controls that should be established in
businesses related to the following industries:
Hotels and related activities - We have been related to this industry having
managed the financial and management reporting of the operations of
various hotels. We worked with the implantation of operational internal
controls in the areas of incoming clients, food and beverage and fixed
assets.
Auto Dealers including Parts and Service Department – We have been
responsible of the complete accounting cycle including the Parts and
Service Department. We established all the internal controls necessary in
the applicable departments for different dealerships. Also, we designed and
implemented the software for the accounting computerized systems in one
of our clients.
CONTACT US
Ave. Ponce de León #452
Edificio Asociación de Maestros de Puerto Rico
Oficina 4A
San Juan PR 00917
787-641-9630