Compilations
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. A compilation report can be presented to other third parties without the consent or knowledge of our Firm.
Internal Use Only Financials
In preparing an internal use only financial statement we present a business financials for only the management of that specific businesses use. It can not be presented to outside parties as it is for the sole intended use of providing a discussion purposes only review of the businesses financial condition.
Our strict policy is that if we issue an internal use only financial that is provided to an outside party we have not choice but to immediately terminate our relationship with that client. This is due to our liability associated with this financial as well as the breach of service by our client.
Which Report Should You Use?
We recommend that we provide either a monthly or quarterly internal use only financial and a compilation report without disclosures annually. However we are happy to provide any level of service that provides an accurate and timely reflection of your business and allows you to make financial decisions within your business in a time critical manner.
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.
