Proven Expertise in Preparations and Compilations
Financial statements are meant to identify, measure, and communicate information about an organization to interested parties. They can be prepared by your organization’s management, an outside vendor, or a CPA. Depending on the needs of your organization, you may be required to provide them to a creditor, regulatory agency, your owners and stockholders, or others that do business with you. Financial statements also come in handy if you’re selling a business.
When a CPA gets involved, it typically happens at one of four service levels: preparation, compilation, review, or audit. How do you know which service level is right for your organization? To help you better understand your options, here’s a quick look at the two services that we provide:
A financial statement preparation is the lowest level of service on the spectrum. Typically, your accountant will take your numbers and put them in the form of a financial statement. A preparation does not provide any form of assurance; it’s most often used for monthly financial write-ups, and it may or may not include a written report. A preparation is the simplest way to produce a financial statement. You could give it to a third party if you wish.
Like a preparation, a compilation does not provide any form of assurance. It does, however, include a report as well as the accountant’s name, giving it a higher degree of credibility than a preparation.
A compilation can be done in different presentations (e.g., a tax basis) and can omit certain disclosures and/or cash flow information, depending on your needs. In a compilation, your accountant will provide accounting and financial expertise to assist with the presentation of your financials but will not provide an opinion on the completeness or accuracy of them.
We Look Forward to Helping Your Business Achieve Financial Success!
If your business or organization needs a compilation, our experienced team of CPAs, accountants, and tax professionals is here to help.
Not sure what level of assurance your business needs? Contact us using the form below.