Financial Reporting

If you’re a business owner, you are well aware of the importance of your financials. And the team at RS CPAs can help you gain greater insight into your business accounting with our financial statement services. Our role in the financial reporting process creates an opportunity to offer stakeholders, creditors, and investors a clear picture of your organization’s performance. Let’s take a closer look at the different types of financial statements and reports we offer at RS CPAs.

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Financial Statement Compilation

Financial statement compilations are the most straightforward and simple types of reports. Compilations are essentially a cover page that accompanies your financial statements. When you have a compilation financial report, it demonstrates to creditors and stakeholders that you’ve taken the time to partner with a CPA firm.

Compilations, however, do not offer any real assurance on the accuracy of your financial statements. When we create a compilation, we’ll do a cursory check on the essential features of your statements. In most instances, the compilation statement is sufficient for small businesses looking for personal loans. Business loans will usually require a more in-depth financial statement, such as a review.

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Financial Statements Review

While the compilation report offers no assurance, the review report offers limited assurance. With a review report, our CPAs will review and inquire about your financials. We’ll make inquiries concerning the accounting principles and practices used by your business. We will also conduct analytical procedures to understand your prior-year and current-year balances.

In most instances, a review will satisfy the needs of potential buyers, lenders, and investors. These reports can be helpful in obtaining smaller business loans or lines of credit. At the same time, businesses can utilize the review as a way to reduce challenges associated with the first-year audit. 

Financial Statements Audit

Offering the highest level of assurance, an audit is the most thorough and requires the most effort from everyone. While the CPA must dive deeply into countless aspects of your business, you’ll need to field many more requests for information. During an audit, our accountants will obtain evidence through physical inspection, inquiry with the appropriate people, verification and substantive testing protocols. We will also examine source documents, supporting documents, as well as work with third-parties to confirm legal matters and balances. We conduct audits to ensure your financial statements are free from fraud or financial error. You’ll typically need an audit if you’re looking to:

  1. Raise equity
  2. Plan for significant financing
  3. Sell your business
  4. Get an extended credit from large suppliers
  5. Offer an IPO
  6. Receive funding from state or federal governments 

How To Choose The Right Report?

If you are not sure of your reporting needs, the experts at RS CPAs can help. We’ll consult with you, investors, stakeholders, or your bank to detail levels of assurance offered with each report. We’ll work closely with you to ensure the report you select will best meet your compliance and internal needs. Some key differences between the types of financial statements include:

  1. Level of assurance
  2. Reliance on management
  3. Work performed
  4. Price
  5. Understanding internal control