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Mr. and Mrs. Becker

Ace Company. 1234 Writing Lab Lane FL First Avenue

June 3, 2016

Dear Mr. & Mrs. Becker

Am writing this letter to inform you that I have done a review on your business incomes, due to some factors, I have made some adjustments which will ease your book keeping exercise. First, I have eliminated grocery from the income table since it was meant for personal purpose.

Secondly, I consolidated rent to avoid redundancy in the schedule and I deducted the lost money from total office rent. I also included all the miscellaneous expenses into income table.

Grocery was classified as a business though personal, I had to eliminate it since it was not generating any income to the business and it was not part of expenses. Miscellaneous expenses was not included in the table before and thus it was reducing total expenses.

Following the analysis of the income tax table, I had some questions which ought to be answered. First, I wished to know whether the ace company had any provision for doubtful debts, when did the business started? Also, the company has not provided the following;

1. Name of the plan.

2. Company’s account number.

3. Plan number.

4. Employers and issuers identification number.

The purpose of this letter is to inform Mr. and Mrs. Becker that the ace company needs an improvement in some key areas such as; book keeping and office rent payment. This will make it easier for the Ace Company to conduct auditing and also determine overall business performance.

 Tax consultant

Tamika.