Stockholders, creditors, and private investors often need financial statements that accurately represent the true financial position of a company.
Your stockholders, creditors, or private investors have different levels of risk tolerance. We provide financial statement compilations which are reports based upon information that you provide to us. We do not audit or review your financial statements, but work closely with several CPA firms to coordinate a formal review or audit if our clients find that this necessary. The majority of our customers are privately held companies that require accurate financial statement preparation and analysis. We are experts at providing timely, accurate financial reports for this purpose.
Compilation - Lowest Level of Assurance
In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
Which Report Should You Use?
Each type of financial statement report may suit specific circumstances, depending on requirements from your client's 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. Please call if you have questions about which type of report is right for you.