Almost every organization, whether it's a privately held business, a publicly owned corporation, or a non-profit organization must prepare reports on its financial performance. These reports help owners make operating decisions, enable creditors to evaluate loan applications and provide individuals with information to make investment decisions.
Our firm provides professional compilation and review services to businesses of all sizes. We can quickly compile your financial records into meaningful GAAP-compliant or tax basis financial statements.
A compilation involves gaining a general understanding of your business and industry and bookkeeping system and presenting your financial information in the accepted format of proper financial statements.
In compiling financial statements, we will review the documents to see if they appear reasonable and free from any obvious misrepresentations or departures from generally accepted accounting principles. We will not express an opinion or an assurance about these statements - instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Often outside parties, such as lenders or suppliers require that businesses submit compiled financial statements before they advance credit.
Compilations allow business owners to have a clear picture of the financial status of their company.
A review consists primarily an in-depth understanding of your business and financial information. A review is sufficient for businesses that must report their financial positions to third parties, such as creditors or regulatory agencies. We use management inquires, analytical procedures and our knowledge of your business and the industry to provide an evaluation of your company's financial position.
During a review, we will inquire about your business, your accounting policies and procedures, your industry, operations and personnel. We will also ask about any changes in these items and request other pertinent information.
In addition, we will conduct a battery of analytical procedures, such as ratio analysis, comparison of your operating statistics to prior periods or perhaps to industry averages, as well as other financial analyses deemed appropriate. Our analyses provide a better understanding of key relationships among certain numbers. This understanding gives us more assurance about the reasonableness of your financial condition.
Our firm also prepares custom financial reports for internal and managerial use.
Which Report Should You Use?
Each type of financial statement report may suit specific circumstances, depending on requirements from your bank or other parties, as well as meet budgetary needs. Understanding each report's unique strengths and weaknesses can help you choose the most appropriate one.
For information or questions about which type of report is right for you, please contact us.