780 W. Napa Street, Sonoma, CA 95476
(707) 931-4508

Financial Records Reconstruction

Business is the art of juggling competing priorities.  Owners and managers must decide which critical projects deserve scarce resources while postponing tasks that don’t contribute immediately to the bottom line.

It Can Wait…Until It Can’t

It should come as no surprise that a business owner would choose to focus on revenue-generating projects and ignore mundane managerial chores such as maintaining financial and bookkeeping records.  But at some point in the life of a business, any number of mostly unpleasant and unavoidable circumstances are likely to occur that will require the owner to produce a reliable set of financial records.

When they occur, the owner will be faced with the herculean task of reconstructing financial records that accurately and comprehensively reflect the financial characteristics of the business.

Among the triggering circumstances:

Legal, Tax, and Compliance Events

  • State or federal tax audits
  • Tax return preparation
  • Civil or criminal investigations, including supporting claims of embezzlement, theft, elder financial abuse, insurance fraud, contract disputes, and misappropriation of assets
  • GAAP compliance
  • Strategic tax planning
  • Complying with new international accounting standards

Business Growth or Decline

  • Business growth that requires a retooling of accounting/bookkeeping systems
  • Loan applications or proof of compliance with existing loan covenants
  • Anticipated sale, merger, or acquisition of a business
  • Business valuations
  • Determining cash flow and solvency
  • Budgeting and forecasting analysis
  • Bankruptcy, insolvency or restructuring

Investor/Donor Relations

  • Annual reports preparation
  • Vendor or major donor/investor requests for financial information
  • Rebuilding trust in financial reporting

Changes in Ownership or Leadership

  • Divorce–supporting or refuting claims that accounts and financial data have been altered or income and assets have been hidden
  • Spousal and child support income calculations
  • Partner and shareholder disputes
  • Estate planning
  • Exit and succession planning
  • Probate or other court accountings
  • Conservatorships
  • Board of Directors changes
  • Abrupt change of leadership or accounting personnel

Emergency Response

  • Accidental destruction of records
  • Disaster recovery or casualty loss
  • Computer systems failure

Whatever the circumstance, Aho & Associates can locate and organize your source documents and data files, and reconstruct your financial records so that they will accurately and comprehensively reflect the financial health of your business.