Financial Statements
Evaluate the financial performance of your business in an easy to read format
Numbers are not for everyone. Fortunately, financial statements make it easier for you to understand what the numbers actually mean! They are an integral part of running your business.
Our Service
As a business owner, you will often need to show the financial records, performance and health of your business for a number of different reasons. All of this can easily be extrapolated from financial statements. At MadanCA, we can compile and formulate accurate financial statements in an easy to read format and explain to you what the numbers mean. Our financial statement services are often done in conjunction with our corporate tax return services, but can also be done independently. We ensure the utmost accuracy when compiling them so that you are prepared for situations when you have to disclose them to banks for loans, for potential buyers of your business and for situations in which you are audited.
Key Elements of our Financial Statement Services
- Complete, and comprehensive reports
- Reliability and trust with experienced advisors
- Disclosure to the bank, where your company has a loan or mortgage
- Submit company’s corporate tax returns
- Buying and selling businesses
Client Testimonial:
Madan Chartered Accountant provides extremely timely and professional accounting services. Allan is extremely knowledgeable, easy to work with and has put together a great team. I would highly recommend him. As a professional myself, I need someone who is going to perform tax planning in a manner that is above-board and thorough, and he is the perfect person for this. - Rad Law
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Hi, I heard ASPE and IFRS are both accepted financial statements framework in Canada. What is the difference between the two?
Hi Inui,
ASPE are generally geared towards private entities and smaller businesses whereas IFRS is required for public companies. The reason that the IFRS is required for public companies is to ensure that companies that operate in countries that use IFRS are measured using the same framework. IFRS is more costlier to implement then ASPE.
Hi, I’ve been trying to use wave accounting for my business and I realized that I need a software that is a bit more sophisticated than wave. What other bookkeeping software do you recommend?
Hi Geralt,
Hi, we would recommend either Quickbooks or Simply Accounting software. These software are very flexible and are powerful enough to handle bookkeeping for medium sized enterprises. There are several benefits that these software offer including various analytical tools to help assess the health of your business that a standard financial statements may be provide insight to.
Best Regards
Can you give me the amortization period for various capital assets?
Hi Will,
There is no hard and fast rule regarding amortization period for assets. It all depends on your business and your industry. Also, if you are a small business that only requires financial statements to file tax return, you can use tax depreciation method (CCA) as amortization.
I have a Canadian real estate property in Canada. My questions is regarding depreciation. Is claiming CCA a choice or do we have to claim depreciation?
Hi Hermione,
Claiming CCA is the taxpayer’s choice. CCA can be claimed in order to reduce the rental income in the current year. Hence, current taxes are reduced. However, if the property is sold for an amount more than the undepreciated capital cost in the future, then the CCA claimed will be recaptured (i.e. added as income on the tax return) in the year of the sale. Therefore, claiming CCA is a way of deferring taxes to the future.
Hi,
I run a manufacturing business and I have employees working for me in my workshop. For accounting purposes, do I have to report their wages as part of cost of goods sold? Or operating expense? Does it matter for tax purposes?
Hi Stanley,
Normally, wages paid to employees who directly work in manufacturing/production capacity will be part of cost of goods sold whereas wages paid to management, administrative will be categorized as part of operating expense in the financial statements.
Hi there,
My company has a US bank account and I understand that I have to convert it to CAD for financial statement purposes. What exchange rate do I use to convert?
Hi Yannick,
You will need to use the exchange rate on your year end date. For example, if your year end is December 31, you will use the December 31 exchange rate.
Hi Allan,
I just incorporated in August of 2014 and my accountant is asking me for a financial statements. What will be my year end?
Hi Martins,
when you incorporate, you can set any of the date within the 12months of incorporation as your year end. I would speak with your accountant to determine what year end would work best for your business.
can you explain these 2 chapters financial statement 1&2 is there easy way to get the answer
Hi Muhammad,
Please send an email to me with your specific questions so that I can help. My email address is amadan@madanca.com