Keeping
Accounting
Records
by Irv Chasen
Accounting and CPA firms generally
provide their clients with a packet of
standard information when they
submit the completed financial
statement. This standard packet
includes the following documents:
• Letter of transmittal
• Balance sheet listing the client's
assets and liabilities
• Statement of income and retained
earnings—this is commonly known
as a Profit and Loss or P and L
Statement
• Statement of change in financial
position (distribution of capital)
• Notes on the financial statements
When receiving these documents,
the contractor's first question is
usually, "Am I making any money?"
Most turn immediately to the P and L
Statement, assuming that it provides
all the information they need to know
about the financial position of their
business.
Logically, the P