As a business owner you already know each year you have to file a tax return of some kind; whether as a sole proprietor, partnership, corporation or S-corporation.
You may already pay yourself a reasonable compensation and file appropriate payroll reporting and send your creditors your internal financial statements.
What’s the next thing your business may need? A compiled financial statement may be your answer.
An accountants’ compilation report, which states the objective is to assist management in presenting financial information in the form of financial statements without undertaking or obtaining any assurance there are no material modifications needed. The end result of our compilation procedures is our accountants’ compilation report and if obvious or material adjustments are needed we communicate those changes to the business owner to correct and report under the accounting principles you have followed (i.e., GAAP or income tax, for example). Our compilation report along with the financial statements (and footnotes if warranted) becomes a formal report for you to share with third parties (e.g., bank, surety, certain customers, etc.).
A compiled financial statement generally allows a CPA to assist with the financial statements of a company at a reduced cost to a client, by limiting the CPA’s procedures to the form of financial statements.
A compiled financial statement becomes the building block of your finances. It shows you, the owner, have hired an external CPA to be involved in the financial affairs of your business and the financial information may be free from material error or misstatement. It also can be a formal presentation to your banker to allow you to gain or raise a line of credit or term loan needed to grow your business to buy inventory or equipment. A managed debt instrument can be beneficial to your company’s growth and profitability.
If you are interested in learning more about having your financial statements compiled, please contact our office to discuss your options, timing and costs of doing so.
What’s a better service than a compiled financial statement? A reviewed financial statement…..