Financial Reporting

Financial Statement Compilation

The simplest type of report that we can prepare is presenting financial data in the form of financial statements, also knows as a Compilation Report. This report will show creditors and stakeholders that you engaged an outside accountant to prepare and present your financial statements. This type of report is not designed to express an opinion or provide assurance regarding the information contained in the financial statements. You will provide us with financial data which we will use to compile the required financial statements.

In most instances, the compilation statement is sufficient for small businesses looking for personal loans. Business loans will usually require a more in-depth financial statement, such as a review.

Financial Statements Review

While the compilation report offers no assurance, the review report offers limited assurance. With a Review report we will review and make inquiries about your financial statements. We will gain an understanding of the following: accounting practices and principles used by the business, procedures performed for recording and accumulating financial information, and the actions taken at owners’ or directors meetings. We will also perform analytical procedures to understand your prior-year and current-year balances.

In most instances, a review will satisfy the needs of potential buyers, lenders, and investors. These reports can be helpful in obtaining smaller business loans or lines of credit. At the same time, businesses can utilize the review as a way to reduce challenges associated with the first-year audit.

Financial Statements Audit

The audit offers the highest level of assurance as it is the most thorough report. During an audit, we will obtain evidence through physical inspection, we will make inquiries with appropriate company personnel, we will perform verification of documents and substantive testing procedures. We will also examine supporting documents and work with third parties to confirm legal matters and balances. The purpose of an audit is to confirm that the financial statements are free from fraud or financial error. Businesses need audits to : raise equity, sell your business, plan for significant financing, get extended credit from large suppliers, minimize the possibility of fraud, improve productivity in business operations, to comply with statutory rules and regulations, for financial reliability and integrity and to receive funding from state or federal governments.