Compilations and Preparation in Severn, MD
The truth is most small businesses will never need an audited or reviewed financial statement like those issued annually by large publicly traded corporations. Here we focus on providing useful services to small business owners and currently the most useful level of financial statement you likely need is a Preparation. In some instances you may need to step up to the level of a compilation financial statement. These two levels of service are described below. Our accounting and business consulting experts can discuss these with you and aid in decided what type of financial statements your business will most benefit from.
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.
We can also prepare financial statements simply for your use that do not rise to the level of a compilation. Prepared financial statements can be used by you to help you make business decisions and track your business progress. There is no report issued with prepared financial statements and no opinions or assurance is provided.