Investors, creditors and stockholders often need assurance the financial statements accurately reflect the financial position of the company. The financial statements give investors and creditors additional information about a company's performance and financial standings. This is the fundamental purpose of financial accounting – to provide useful financial information to users outside of the company.
We work collaboratively with you to meet your reporting obligations while keeping your business strategies and goals a priority. Our experienced CPA professionals provide an in-depth analysis of your financial information with as little impact as possible to your operations.
We prepare financial statements in any frequency that is most beneficial for you. The statements we prepare are in accordance with an acceptable financial reporting framework. We explain the pros and cons of each and the best fit for your business.
We provide three levels of service to meet various levels of risk tolerance. Types of financial statements we provide:
Audit – Highest level of assurance
An audit is intended to provide creditors, investors and other outside parties with a high level of comfort on the accuracy of the financial statements. Our work includes a review of internal controls, testing of selected transactions and communication with third parties. Based on our findings, we issue a formal report that expresses an opinion on whether the financial statements are presented fairly, in all material aspects, in accordance with the applicable financial reporting framework. Appropriate and often required when seeking high levels of financing or outside investors, or when selling a business.
Review – Limited level of assurance
A review is intended to provide lenders and other outside parties with a basic level of assurance on the accuracy of financial statements. Less expensive and less comprehensive than an audit, a review engagement consists primarily of analytical procedures we apply to financial statements and inquiries we make of your company’s management team. A review report expresses limited assurance in the form of a financial statement. We are not required to study and evaluate internal controls or verify data. Reviewed financial statements must include all required footnotes and disclosures. Appropriate as a business grows and is seeking larger and more complex levels of financing and credit.
Compilation – No assurance
A compilation is normally requested by the Company owners and lenders and other outside parties who are familiar with the business yet request a CPA outside the business to report on the Company’s financial statements. Appropriate when initial or lower levels of financing or credit are sought or significant collateral is in place. We present information that is the representation of management and expresses no opinion or assurance on the financial statements.
Each company’s needs the appropriate level of service for their financial statement may differ depending on their requirements. Understanding each engagements’ strength and weakness helps choose the appropriate type of financial statement reporting.
Professional standards established by the American Institute of Certified Public Accountants (AICPA) require all firms preparing financial statements to undergo a Peer Review on a periodic basis to determine that the firm is following professional standards in providing these services. Our firm has received unqualified opinions in every peer review.
Please call if you have questions about the type of report which is right for you.