Compilations & Preparations

Sometimes you need financial statements for either internal or external purposes, but do not need the level of assurance that an audit or review engagement provides. In that case, a compilation or preparation engagement may be a more efficient and effective means of meeting your needs. The objective of these engagements is to assist you in presenting financial information in the form of financial statements. A description of each service and examples of when it might be appropriate are as follows:

Preparation Engagements
Financial statements are prepared but no formal reports are issued. Prepared financial statements may be used:

  • To comply with bank requirements
  • As part of investor packages
  • For management's use

Compilation Engagements
Financial statements are prepared, along with a report that discloses no assurance is provided. Compilation engagements may be appropriate when outside parties seek financial statements prepared by an external CPA without requiring a level of assurance on the accuracy of the financial statements.

In addition to preparing or compiling financial statements of historical information, JTaylor also has the expertise to prepare or compile financial statements of pro forma, forecasts, or projections, which may be helpful if you are contemplating a change in your business or planning for future needs.

  • Pro Forma – Illustrates what the significant effects on historical financial information might have been had a proposed transaction or event occurred at an earlier date.
  • Forecast – Presents an entity’s expected financial position, results of operations, and cash flows based on management’s assumptions regarding expected conditions and expected course of action.
  • Projection – Presents an entity’s expected financial position, results of operations, and cash flows that would exist given one or more hypothetical assumptions.

It can sometimes be difficult to know which level of service is appropriate for your circumstances. The JTaylor team will collaborate with you regarding your needs and advise you regarding the optimal level of service for your specific situation.

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