We can issue three different types of financial statement reports: Preparations, Compilations and Reviews. With over 30 years of experience, we can quickly provide you with a professional and timely report for your bank, the SBA 8(a) annual report, your insurance company, or for whomever needs accurate financial information about your company.
A prepared financial statement is a new nonattest service, effective Dec 2015, where the CPA only prepares the financial statements. No report is required nor does independence have to be considered.
Examples could include preparing financial statments in order to prepare the tax return, in conjunction with business valuation services, or for maintenance of depreciation schedules.
A compilation is for clients that have assurance in their own numbers and want a CPA to issue a report in the AICPA prescribed format.
We take the information provided by the client and encapsulate it into the AICPA prescribed format. We verify that the cash in the bank is correct, and for construction companies, also prepare a Work In Progress schedule, using the percentage of completion information provided to us by the client.
We do not make any changes to the information provided by the client since that would be a misrepresentation of the report issued, which states that all numbers are the representation of the client and that we have not reviewed or audited the financial statements.
If you are in the SBA 8(a) program, and your gross sales are less than $2M - you are required to have Compiled Annual Financial Statements as a part of your annual review.
In other words, a compilation report is perfect for someone thinking, "Thank you very much, I know what I am doing, I only want you to prepare the report in the AICPA prescribed format."
Before we issue a review report, we perform analytical procedures on selected accounts, which entail testing the account balances. We perform bank reconciliation analysis, test for relationships between the cost of goods sold, the WIP, sales and inventory. Once we have performed analytical procedures, we issue a review report which describes the degree of responsibility we are taking and what we have done to ensure accuracy.
If you are in the SBA 8(a) program, and your gross sales are between $2M -$10M, you are required to have Reviewed Annual Financial Statements as a part of your annual review.
In a review, the client says, "I'm not sure I did this right, please check some of my numbers and make any adjustments before issuing the report."
We can refer you to another CPA firm for an audit, where they will perform analytical procedures on all of the chart of accounts using an audit program that is documented for each section of the balance sheet and income statement. An audit is a very thorough review and analysis of the client's books, and takes more time.
If you are in the SBA 8(a) program, and your gross sales are greater than $10M - you are required to have Audited Annual Financial Statements as a part of your annual review.
An audit is perfect for someone who is thinking, "I want my accountant to check everything, to make sure everything is correct, and to issue a report."
If we can assist you with preparing professional financial statements for your business, then please give us a call or email. A copy of your business' trial balance will help us estimate the time / cost of the project. Please visit our directions and appointments page for more information.