We often hear prospective clients come to us explaining they are in need of clean financials. Interestingly, this is not a technical term—but its use is so widespread that it often seems to be. So we sat down with AccountingDepartment.com’s Senior Implementation Controller, Jennie Hoffman, CPA to discuss what she thinks clients really mean when they say clean financials—and what they should actually be asking for instead.
Jennie Hoffman: “I'm not sure where the term, "Clean Financials" comes from, or what a client interprets that to mean. I suspect that bankers will tell them they need clean financials or that their Tax Preparer is suggesting they obtain assistance in order to have clean financials to prepare the tax returns.”
“Ultimately, the lack of clarity over the exact definition of clean financials may allow many outsourced accounting companies the opportunity to say they provide clean financials, when they actually provide anything but that.”
“To us, clean financials means quite a few things.”
“Unfortunately, not all accounting services are created equal, so unless you’re specifying accurate, consistent, professional and timely, you may think that’s what you’re getting—but it could really be up to the discretion and interpretation of your accounting partner. Having clear communications about your expectations and deliverables upfront and often will help ensure you’re actually getting the clean financials you want.”