Expertise. Peace of mind. Courtesy of Hilliard & Milton, LLC.
To effectively manage financial affairs, you need three things: extensive knowledge, meticulous organization, and constant vigilance. Hilliard & Milton, LLC provides all that and more, thanks to a complete range of accounting services to help you sort through the complexities of your personal or business finances.
We're proactive in serving each client's needs, providing helpful information and access to a wealth of resources on a regular basis. Our experienced, knowledgeable team is ready and waiting to provide you with incomparable personalized service, whether you need it on a temporary or ongoing basis.
Click on the service titles below for more information on just some of the specialized services available to Hilliard & Milton, LLC clients:
In today's hectic business world, it's a challenge to juggle all the daily tasks that keep your business running efficiently. As a small business owner you should be working on your business rather than in your business. We can take care of your books so that you have more time for those important aspects of running your business and generating profits!
The primary facet of your company’s financial statements is the general ledger. Every transaction your company has flows through the general ledger, therefore, if any problems arise with your general ledger, all of your books can be inaccurate. This in turn can lead to bad decision making. We will fix all located discrepancies so that your general ledger gives a true and accurate picture of where your company stands. This is especially vital in today’s business environment.
Wouldn't it be helpful to rely on a trusted, accessible business partner to handle these functions for you? We're here to lend a hand with the following services either on a monthly or quarterly basis:
- Bank reconciliations
- Adjusting journal entry preparation
- Accounts receivable and payable
- General ledger maintenance
- Transactional review
- Financial statement preparation
- Payroll check preparation
- Payroll tax deposits
- Quarterly and annual payroll tax reporting and W-2 preparation
- 1099 filings
- Sales tax reporting
The highest level of assurance is provided by an audit. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and includes tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. An audit also includes a review of internal controls.
An Audit facilitates the following:
- Satisfies not only the stockholders as to the reliability of the financial statements but also managers, customers, suppliers and creditors.
- Ensures payments of corporate tax, sales tax, and other taxes on-time and accurately which in turn assists in the avoidance of interest, penalties, and investigations.
- Needed for compliance with certain loan covenants and regulatory requirements.
- Helps detect and/or prevent material fraud and error.
- Purchase and/or sales of a business.
- Provides detailed insights into the operations of your business and your financial position.
- Independent examination of your system of internal control.
Hilliard & Milton, LLC employs a risk based audit approach which is superior to traditional audit approaches in two areas.
- Focus is on risk – Risks associated with a financial statement audit are the underlying causes of financial surprises. Identification of these risks during the planning phase of the audit rather than only looking at the accounting records provides a better product for you the client.
- Value added approach – Adding value to the audit product is done keeping you in mind. Examining and inspection of the quality of the financial information and reporting process adds value to management.
The risk based audit is a practical approach to the audit process and addresses the requirements of authoritative literature. An audit strategy is then designed to assist us in meeting those requirements. Our audit approach is flexible and adaptable, allowing us to better leverage our knowledge of you, the client, to tailor our audit procedures.
In summary, the risk based audit focuses on both recorded and unrecorded risks and improves financial statement assurance and the financial statement reporting process. When risks are identified in a particular area the risk based audit focuses more audit time in that area. In addition, more client controls may be required in those areas.
Reviews are less extensive than an audit and provide an intermediate level of assurance. Reviews consist of primarily analytical procedures applied to the financial statements. A review also consists of various inquiries of management. Additional procedures are performed in those areas where inadequate supporting information is available or the data obtained appears inconsistent with the related disclosures. Reviewed financial statements must include all required footnotes and other disclosures but do not require a review of internal controls.
In many instances users of the financial statements require a review in order to have the advantage of a CPA review the financial information without the more extensive work and thereby expense of an audit.
Compilations provide the lowest level of assurance. Compiled financial statements present information in the form of financial statements that are the "representations of management". No opinion is expressed on complied financial statements. CPAs rely only on their knowledge of accounting principles and their general understanding of the business to present the obtained information in the form of financial statements. Compilations may be completed monthly, quarterly, or annually, and may include comparisons with prior periods.
Regardless of the level of assurance needed, rest assured we will provide quality service in a timely manner. Through our commitment to excellence, we wish to provide effective, cost efficient services to you throughout our relationship.
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Financial Institution Services
Financial Institution Services
We have been providing services to financial institutions since inception. Our firm takes all appropriate measures to ensure compliance with all regulatory issues, accounting, auditing and related disclosures. Our firm has a long history of excellence achieved in our services provided to financial institutions. We pledge to continue the same commitment to you. We can perform a wide range of services to our financial institution clients and are flexible enough to incorporate the specific needs of our clients. Some of the services we provide include the following:
Internal Audits and Internal Control Evaluations
Bank Secrecy Act
Information Technology Examination
ALLL Consultation and Analysis
Hilliard & Milton, LLC strives to work with your internal team to provide and independent look at your processes and providing recommendations for improvement. Through this relationship we can achieve a higher quality of service. Our regulatory compliance services include assistance with:
- Regulation B – Equal Credit Opportunity
- Regulation C – Home Mortgage Disclosure
- Regulation D – Interest on Deposits
- Regulation E – Electronic Fund Transfers
- Regulation H – Flood Insurance
- Regulation X – Real Estate Settlement Procedures
- Regulation Z – Truth in Lending
- Regulation AA – Unfair and Deceptive Practices
- Regulation BB – Community Reinvestment (technical compliance only)
- Regulation CC – Expedited Funds Availability
- Regulation DD – Truth in Savings
- Privacy of Consumer Financial Information
- Fair Credit Reporting
Bank Secrecy Act
We offer financial institutions with an independent Bank Secrecy Act/Anti-Money Laundering testing. This independent testing is required by the Bank Secrecy Act (BSA). We have developed procedures designed to assist you in evaluating the bank’s compliance with the BSA; Subpart B of Part 326 of the Federal Deposit Insurance Corporation (FDIC) Rules and Regulation. We provide procedures in the following areas:
- Internal Compliance Programs and Procedures
- Internal Controls
- Anti-Money Laundering Program
- Customer Identification Program
- Customer Due Diligence
- Suspicious Activity Reporting
- Currency Transaction Reporting
- Sale/Purchase of Monetary Instruments
- Wire (Funds) Transfer
- Office of Foreign Assets Control
- Money Service Business
- Brokered Deposit
We can perform a loan quality review of selected loans in order to address the following areas relating to the Bank’s administration of its loan portfolio:
- Review documentation of the financial, credit and collateral underwriting procedures employed by the financial institution for each loan reviewed.
- Determine compliance with the Institution’s Board approved loan policy.
- Determine that loans reviewed were originated within the Board approved lending authority.
- Determine that loans reviewed contain adequate perfection of collateral and loan files are complete of related legal documentation required for each type of loan originated.
- Review the related credit quality of selected loans as of lending date and subsequent deterioration.
- Review the Bank’s methodology and documentation of its Allowance for Loan and Lease Losses (“ALLL”).
- Address the adequacy of the Bank’s ALLL in light of the loans reviewed.
The loans reviewed will be based on discussion with management but should include all credit relationships over a certain scope. The loans reviewed are to ensure the Bank is in compliance with sound underwriting procedures and with the requirements set forth in the Bank’s Loan Policy.
According to the NACHA ACH Rules - Appendix Eight – Rule Compliance Audit Requirements, each Participating Depository Financial Institution (DFI) shall conduct an internal or external audit of compliance in accordance with the requirements of Appendix Eight. The audit is to ensure compliance with the NACHA ACH Rules and to minimize risk associated with ACH payment processing.
ACH audits should be performed under the direction of the audit committee, audit manager, senior level officer, or an independent (external) auditor. Hilliard & Milton, LLC would be happy to assist you in performing this audit.
The ACH audit must be completed no later than December 1 of each year for financial institutions that are able to receive deposits from customers or credits from the Federal Reserve Bank.
ALLL Consultation and Analysis
Loan loss provisioning methodology has become a focus for regulators of community banks. A majority of recent supervisory recommendations have dealt with the methodology of the allowance as opposed to the adequacy. SFAS No. 5 Accounting for Contingencies and SFAS No. 114 Accounting by Creditors for Impairment of a Loan as well as interagency guidance are the principal documents guiding the ALLL methodology.
Recent pronouncements by the accounting industry have made it clear that there should be two components of the allowance: a component for SFAS No. 114 and a component for SFAS No. 5. SFAS No. 5 sets the standards for when to establish a loss reserve--when it's probable that an asset is impaired and when the amount of loss can be reasonably estimated. In other words, when it's probable or likely that a loss will be incurred, an allowance or reserve should be established.
With SFAS No. 114, a bank needs to determine how it identifies those loans that will be individually evaluated for impairment. Once they've identified the group of loans to analyze for individual impairment, they need to determine how they're going to analyze the loans. SFAS No. 114 lays out three methods.
1. Fair value of collateral
2. Present value of expected cash flows
3. Observable market price
Hilliard & Milton, LLC can assist you in determining the adequacy of your methodology as well as determine the adequacy of your current ALLL in relation to current industry and economic trends, geographic issues and political issues.
Business Entity Selection
Choosing the form of entity of your business (e.g. "S" corporation, sole proprietor, limited liability company…) is a crucial decision that can have longstanding tax implications, positive or negative. We can assist you in evaluating the pros and cons of each entity type to help you determine the most advantageous form of business for your company.
Business Succession Planning
Effective coordination of the transition of your business to your successors is critical to ensure its continued success once you decide to remove yourself from the company's day to day operations. With a solid background in tax and other financial matters, we are fully qualified to address the complex issues of business continuation and can assist you in developing a strategically sound plan.
Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can guide you through the complex process of getting your financial affairs in order.
A properly structured financial plan enables you to face any financial challenge that may present itself at each stage of your life. Through the financial planning process, we can help you assess your financial needs and develop strategies that will enable you to achieve your goals and strengthen your financial security.
Successful implementation and periodic review of your financial plan will ensure financial independence during your working years and through your retirement years.
Estate & Trust Tax Preparation
Effective estate and gift planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can guide you through the complex process of getting your financial affairs in order.
During our years of experience dealing with many taxing authorities, we have achieved a level of competence that can ensure our clients they are being properly represented before the various federal and state tax agencies.
Here at Hilliard & Milton, LLC we know that nothing can be more time consuming and worrisome than the payroll function. We are here to assist you in all of your payroll needs. We are able to help you implement a payroll system which fits your individual needs to allow you to spend more of your time generating sales, servicing customers or prospecting new business. Payroll tax laws change frequently and can be quite complex. Learning all the rules and staying up to date can be a very time consuming process.
When you outsource your payroll function to us you will be able to......
- Eliminate the need of updating and maintaining your own payroll system.
- Rest assured that updated laws and withholding tables are integrated timely.
- Reduce overhead related to specialized employees.
- Assistance in calculating payroll liabilities.
- Assistance in remitting payroll information to both the state and federal governments.
- Focus on working on your business rather than in it.
Our Payroll Services include:
- Company payroll preparation and processing
- Payroll tax computation and remittance
- Preparing payroll quarterly reports and transmission
- Preparing year-end payroll reports (W-2’s, 1099’s, etc.) and transmission
- Assistance with applying for payroll ID numbers
- Assistance with payroll audits
- Accounting for employee benefits and withholdings
We can tailor our services to best fit the needs of your organization. More specifically we offer:
Comprehensive Payroll Services – We will timely prepare and print your payroll checks for you, complete all IRS and state tax reporting as well as EFTPS tax deposits and provide to you applicable monthly, quarterly, and annual payroll tax reports, including W-2, W-3 and 1099 forms.
After-the-Fact-Payroll Services - We will take your payroll records and information and prepare for you all quarterly IRS and state payroll tax reports and the annual W-2, W-3 and 1099 forms.
Hilliard & Milton, LLC has been assisting clients with their payroll needs since inception. Our team of professionals include Certified Public Accountants and QuickBooks ProAdvisors who will work together to help you set up a payroll system that is right for you.
Sales Tax Services
Many of our clients are responsible for collecting and submitting sales taxes in many different vicinities. We can assist your company in the compilation of information and preparation of sales tax returns in an efficient and timely manner.
Tax planning is an essential element of the tax preparation process. By making tax planning part of your overall business strategy, you can use our experience and access to the most current new developments in the tax laws to minimize both your current and future tax liabilities.
Our significant investment in computerized tax preparation and research software enables us to accurately and efficiently prepare returns for various types of entities including individuals, corporations, partnerships, trusts, estates, and not-for-profit organizations.