One of the goals of Staton CPA is to provide your business, no matter how small or how big, financial information that is compiled in a format that conforms to all applicable accounting standards while being useful to both you and other management of your company as well as to any third parties who may request financial information from you. There are many variations and many possible formats that CPAs can assist their clients in preparing and presenting this financial information. Each different form of financial information presentation has a different degree of assurance provided by the CPA, various accompanying disclosures, and varying acceptable applications where the financial statements may be used. A compilation is a service in which the certified public accountant takes records provided by management of a company and prepares financial statements for use by management and/or third parties. This service can be sufficient to suit many third party requests as well as provide a wealth of information for the business owner and management. No assurance is provided by the CPA in regards to the conformity of the financial statements with applicable accounting standards or to the fairness of the presentation of the financial statements. Following is a few types of compilation services that we offer:
Management Use Only Compilation
Management use only compilations are standard financial statements that are prepared on a monthly, quarterly, or annual basis that simply serve the purpose of providing useful financial information to management. This type of compilation is a standard part of all of our outsourced accounting packages. These compilations not only provide necessary financial information to the business owner(s) and management but also serve to keep books and records tidy and in order, and in many cases provide a starting point for preparing records necessary for tax preparation. This form of financial statements can also be highly customized to fit the reporting needs of the business owner and management. Every business owner should make it a priority to review some sort of professionally prepared financial statements on a regular basis, and management use only compilations are a great place to start.
Traditional compilations are prepared for use by third parties other than the owner or management of a company. This type of compilation is prepared with required disclosures and in the proper format required by applicable accounting standards. There are many applications where traditional compilations are required or expected - business line of credit approval, contractor's licenses, and mortgage applications just to name a few. Our firm has knowledge and skill in applying professional standards to prepare compiled financial statements that comply with all applicable accounting standards and is tested periodically under a stringent peer review program to ensure the utmost quality, accuracy, and compliance is upheld in every engagement.
Compilation Omitting All Disclosures
If third parties require a compilation from a company but are not concerned about a multitude of disclosures, a compilation that omits all disclosures may be an acceptable option. This form of compilation presents financial information in the form of financial statements, but does not contain the many disclosures that a traditional compilation requires. This omission of disclosures is stated in the report that accompanies the financial statements to inform the user. This may be a viable option that can significantly reduce the size of the engagement while still providing you with the financial statements you need to satisfy the requests of a third party.
Not sure what form of compilation is right for you and your business? No problem and you are not expected to know. Give one of our professionals a call today and we will customize an engagement to fit your needs.