Accounting Services: Compilations and Reviews
As the owner of a small business or privately held company, you are accountable to creditors, private investors, and shareholders, all of whom are interested in ensuring that the company’s financial statements are accurate and represent the true financial position of the company.
Larger companies may be subject to annual audits, but small businesses and privately held companies are typically not required to undergo accounting services such as an independent audit of their financial statements - nor do they necessarily need one.
If you know that an audit is not required but still want to provide accountability, then a compilation or review - or both - is probably all you need to make sure that your financial statements are accurate so that you can make sound business decisions for the future.
Compilation or Review?
Compilations are the first level of service and consist of assembling financial data from your accounting records. The data is presented in the form of financial statements in accordance with standard accounting practices and is accompanied by a report.
Note that with a compilation, the accountant provides no verification that the numbers presented in the statements are accurate. Financial statements are exclusively for the use of management.
Reviews are the second tier of financial accountability and are more involved than a compilation, but not as comprehensive as an audit. During the review process we ask key personnel about the company’s accounting policies and procedures, industry, operations and personnel. A review report is issued in addition to financial statements.
Again, the financial statements generated are exclusively for the use of management.
Proven Expertise in Compilations and Reviews
If you're unsure whether you need a compilation or a review - or both - the experienced accounting services team at Acclamar, LLC is here to help. Call (703) 270-1007 today to set up a free consultation.
