Financial Statement Preparations - Compilations - Reviews
Financial Statement Preparation, Compilations and Reviews
Although many business can prepare financial statements in house, you may prefer to have a CPA prepare your financial statements in accordance with an accounting framework that is appropriate for your business.
Our Team of CPA's can assist you determining the level of service, the accounting framework and the frequency that is most useful to you and that meets the needs of any third parties such as lenders and licensing authorities.
We can provide you with the following levels of financial statement services:
Basic Preparation of Financial Statements is a service primarily intended for your own use to have current information on the financial standing of your business and to make decisions accordingly. You can share your financial statements with outside parties but on each page,we will will include a notice that “no assurance is provided” on the financial statements. We will prepare your financial statements directly from the records you provide, and we will not verify the accuracy or completeness of the information and is will no issue a formal report on the financial statements
Compilation of Financial Statements is a service where our role as your CPA is more apparent to outside parties, and as such, the requirements for performing this service are more explicit. If we are not independent from ownership, management and other circumstances in their relationship to you and your business, we are required to disclose the impairment to our independence in our compilation report. The compilation report is the first page before the actual financial statements and is prepared on our firm’s letterhead. We are also required to read the financial statements in light of the financial reporting framework being used and consider whether the financial statements appear appropriate in form and are free from obvious material misstatements.
Review of Financial Statements is a service which involves performing analytical procedures, inquiries and other procedures to obtain “limited assurance” on the financial statements and is intended to provide a user with a level of comfort on their accuracy. Unless we are independent, we cannot perform a review engagement.
In a review engagement, we are required to understand the industry in which you operate, the accounting principles and practices generally used in the industry, and to obtain knowledge about your business. We will issue a formal report that includes a conclusion as to whether, based on the review, we are aware of any material modifications that should be made to the financial statements in order for them to be in accordance with the applicable financial reporting framework.
A review typically is appropriate as a business grows and is seeking larger and more complex levels of financing and credit. It is also useful when you, as the business owner, are seeking greater confidence in your financial statements for the purpose of evaluating results and making key business decisions.
Whether your business or organization needs a basic preparation, a compilation or a review - our Team of CPAs, accountants, and tax professionals is here to help. We look forward to discussing your business needs!