SERVICES

a. Outsourcing

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As a business owner you have more important things to focus than to keep your own books. We take care of your accounting needs, so you can get back to the job of running and growing your business for profits.

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As part of our outsourcing services, we can provide a range of aid that can benefit your operations needs such as Accounting and/or bookkeeping, bank reconciliation, financial reporting, and payroll processing. Refer below for a detailed description of services offered:

 

Accounting and Bookkeeping (full accounting cycle)

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• Obtain source transaction document such as billing, supplier invoices, deposits and checks to record transaction in the system on a recurring basis as assets, liabilities, income, payroll and expenses within the corresponding periods.

 

• Review of accounting data (general ledger) to ascertain proper recognition of transactions are in place in accordance with General Accepted Accounting Principles (GAAP) which are the commonly followed and accepted set of rules, procedures and guidelines for reporting financial statements.

 

• Cash to accrual basis of accounting conversion compliance under the PR Tax Code requirement under section 4041.01 for businesses that have inventory and/or revenues over $1 million.

 

• Financial statement reports and review: Balance Sheet, Income Statement, Cash Flow, among others.

 

• Management of Accounts Receivable and Accounts Payable process.

 

• Informative tax withheld returns (480’s, others)

 

• Serve as liaison between audit and clients to submit evidence for audit completion.

 

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Bank Reconciliations

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• Reconciliation of all bank and credit card accounts each month to keep accounting records up to date to allow identify the following:

 

• Identify lost checks, lost deposits, and/or unauthorized transactions.

 

• Detect and prevent access bank charges and ensuring transactions are properly posted by the financial institution.

 

• Cash management tracking to identify correct bank balances to mitigate insufficient fund payments.

 

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Financial Reporting

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• Preparation of reporting package to provide a consistent format for reporting financial information for management that include but are not limited to:

 

• Balance Sheet – provide a snapshot of the entity financial condition at a specific moment in time to help the user to handle the financial strength and capabilities of the organization.

 

• Income Statement – also known as a profit and loss statement provide an itemized list of all revenues and expenses to determine net income.

 

• Cash Flow Statement – helps understand the liquidity of the operations and anticipate future deficits (or lack of) cash and/or identify opportunities for investments to improve operations.

 

• Actual vs. Budget – helps determine areas of your business that are over or under budget to identify transaction that are underperforming and/or causing unexpected expenditures.

 

• Subsidiary for significant areas of the financial statement to understand composition of financial statement line items.

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Payroll Services

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• Preparation of checks payment either by checks and/or direct deposits through your financial institution.

 

• Payroll governmental compliance for tax deposits and/or tax filling either monthly, quarterly, and annually. (Refer to tax compliance for more information)

 

• Detailed reports on employee’s vacation, sick and personal days accrual according to local tax laws and regulations.

 

• IRS and State tax reporting

 

• Quarterly Returns: income tax, social security, worker’s compensation, unemployment and disability.

 

• W2 and W3 informative return processing.

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b. Attestation

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Government, owners, stockholders, creditors, private investors, and/or management often needs some type of assurance that the financial statements (or a portion of a financial data) represents the true financial position of a company.

 

Audit of Financial Statement – Highest level of assurance

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• An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by the general practice.

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• Our work includes a review of internal controls, testing of selected transactions, communication with third parties, and the issue of the audit report on whether the financial statements are fairly stated and free of material statements.

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Review of Financial Statement – Limited assurance

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• Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures that are applied to the financial statements in combination with inquiries made to management team.

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Compilation of Financial Statement – Lowest level of assurance

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• In compiling financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the financial statements.

 

Agree Upon Procedures (AUP)

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• Performance of specific procedures on subject matter and reports the findings without providing an opinion or conclusion. The subject matter may be financial or non financial information.

• Some examples related to AUP may includes but are not limited to:

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• AUP – Report of compliance to inspect and confirm expenses claimed in a tax return (CC RI 19-14 and CC RI 20-39)

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• AUP – Report of compliance to inspect and confirm revenues and expenses claimed in a tax return, both in compliance with the filing and payment of the monthly sales and use tax return and informative returns. It also requires the recalculation of tax depreciation and amortization, reconciliation of informative returns with expenses in books, vouching of expenses not reported in return, and the review of related entities due to/from accounts (CC RI 19-14 and CC RI 20-39)

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• AUP – Report on the validation of invoices for educational services to special need students by the Department of Education

 

Personal Financial Statements

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• Preparation and presentation of personal financial statements for individuals or group of related individuals (families) which are formally organized for specific purposes, such as obtaining credit, income tax planning, retirement, or public disclosure required by governmental agencies.

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c. Tax Compliance

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Tax preparation for Individuals and Corporation

 

Tax preparation for individual

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• Puerto Rico income tax return

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• Forms 1040PR (Self employment tax return)

 

Tax preparation for corporations

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• Annual income tax returns (Corp, LLC, exempt organizations, other)

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• Monthly tax returns

  • Sales and use tax returns

  • Room tax

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• Quarterly tax returns (Payroll and professional service)

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• Other tax returns

  • Municipal tax (Patente)

  • Corporación del fondo del seguro del estado

  • Property tax

 

Summary of common regulatory compliance dates [CR1] 

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