Financial Reviews & Compilations
How’s your financial health? As important as going to the doctor is to ensure that your physical health is being seen to, financial reviews and compilations provide insight into the financial health of your business, areas that need attention, and what can be done to ensure the best outcomes. GSR conducts thorough, detailed financial reviews and compilations to help guide your decision-making and controls.
What Does A Financial Review Or Compilation Consist Of?
Financial reviews and compilations both go over your finances. They’re not as time-consuming or in-depth as an audit, but they do provide you with assurance in the accuracy of your records, which is important when working with lenders or investors.
By having regular financial reviews and compilations done, you can make better decisions and implement better controls. This gives you better insight into your company’s finances while providing lenders and investors with the assurance they need to feel comfortable working with your company.
About Financial Compilations
A financial compilation, as it sounds, compiles your financial information from existing records into statements This is good for clients who need assistance presenting their company’s finances in the form of statements. In short, they’re a summary of your finances, but don’t test the data for accuracy. When clients hire us for financial compilations, they tend to focus on profit and loss reports, cash flow statements, and balance sheets. Businesses can specify which statements they require compilations for.
Compilations are easy and straightforward, as all we need is access to your bookkeeping records in order to provide you with the requested statements.
About Financial Reviews
Financial reviews are more in-depth and provide more assurance than financial compilations do. In a review, we’ll analyze your financial information and discuss with members of your management in order to ensure that your statements are free of misstatements. We provide you with a report about whether or not your statements are compliant with financial reporting frameworks, like GAAP.
Reviews are more time consuming than compilations, as we test some of the presented information, such as deviations from GAAP and material issues, though this does not include in-depth testing like an audit does. How long reviews take and how much they cost depend on the depth of the review done.
Reasons To Conduct A Financial Review Or Compilation
Money and how it’s used can make or break a business. Errors may not be intentional, but they can still result in consequences. As such, outside parties, such as lenders or investors, may request financial reviews or compilations that have been done by a CPA. They ask for this in order to see your company’s financial information and have some assurance in whether or not the numbers make sense.
Financial compilations give you the advantage of getting expert eyes on your financial records and having a professional organize your financial information into the necessary format. While compiling your statements, we may also raise questions about irregularities and provide notes to clarify financial statements. Compilations can be useful when planning your budget or involve other documents you need to report.
If you want something more in-depth than a compilation, we provide financial reviews. These give you more assurance in the accuracy of your records, as this process does involve some research and testing of information. This is great to do if you need to take out a small business loan or line or credit. They’re also helpful to identify areas for improvement by assessing strengths and weaknesses.
Do You Need To Have A Financial Review Or Compilation Done?
While having outside eyes on your financial records may feel like you’re under a microscope, financial reviews and compilations can help you obtain an accurate idea of your financial standing. They can prevent problems by minimizing the risk of fraud and improve the value of your business by identifying areas for improvement.
If you need to have a financial review or compilation done, count on GSR for effective work that suits your needs. We pride ourselves on our commitment to the utmost ethics and professionalism in all that we do. We’ll clearly communicate all findings and can provide you with informative recommendations for what can be done to improve your situation.
In addition to financial reviews and compilations, we provide the full gambit of accounting services, including business tax preparation, controller and fractional CFO services, and more. Contact our Glendale, CA office today to learn more about how we can help you with your business’s finances.