Amherst accountant James Kincaid prepares more financial statements for small-business clients now than he did two years ago.
The uptick, he says, stems from stricter lending practices. Many banks and other financial institutions want details – lots of them – before agreeing to extend financing packages to small businesses.
“It means more hours and more work, which frankly for accountants isn’t a bad thing,” said Kincaid, partner at Lougen Valenti Bookbinder & Weintraub LLP. “But it’s a huge effort for business owners.”
Banks that once accepted tax returns as proof of companies’ stability may now require full-blown financial statements, which means business owners must provide key details to accountants who, in turn, create the statements.
James Segarra, managing partner at Tronconi Segarra & Associates LLP, said he views the additional work as “helping clients become better prepared to borrow money” needed to run businesses.
“Lines (of credit) aren’t being pulled, but banks do want to see more information,” he said. “It’s a totally different system of keeping records. I don’t fault the banks, but these can be onerous things to comply with.”
Read full article…
Leave a comment
Follow us on Facebook
Join us on Linkedln