Preparation, Compilation, or Review
As a business owner, you may be accountable to creditors, private investors, and shareholders, all of whom are interested in ensuring that the company’s financial statements accurately represent the true financial position of the company. You may be wondering which one is best for your business. The answer depends on the level of assurance or financial accuracy that you want. For instance, you may decide a compilation is all you need this year, but in subsequent years, you may decide that a review provides better information about your financials and enables you to make better decisions about the future growth of your company.
Preparations
The preparation of financial statements involves the process of aggregating accounting information into a standardized set of financials.
Compilations
The first level of service is the compilation. There is no verification that the numbers presented in the statements are accurate and the financial statements produced are for management and third-party use.
Reviews
More involved than a compilation, but not as comprehensive as an audit, reviews provide “limited assurance.” Key personnel are interviewed about the company’s accounting policies and procedures, industry, operations, and financial statements. A review report is issued as well.
We look forward to helping your business achieve financial success.
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