Preparing Financial Statements

We don’t like to use too much accounting jargon, but there are basically three levels of financial statements that a CPA firm can prepare for its clients, and those levels are compilations, reviews, and audits.  Each level is progressively more complicated, starting with compilations and working up to reviews and then finally audits, and the professional fees to prepare the financial statements progresses in the same order, with audits being the most costly, followed by reviews, and then by compilations.  We help our clients determine which level of financial statements are right for their business.

Virtually all businesses benefit by having regular financial statements compiled, and then spending an appropriate amount of time to analyze those statements. Compiling financial statements is really the final step in the process of providing monthly, quarterly, or annual accounting services; the initial step in the process is maintaining and updating the basic accounting records and general ledgers.  Often, compiled financial statements must be shared with a lender or other owners on a periodic basis.  Because of our experience and professional influence, banks typically know our firm and respect our procedures and the integrity of the financial statements that we prepare.