A compilation report is a document that shows that an accountant has compiled your financial statements from the information you gave them. It does not mean that the accountant has checked or verified your financial statements.
A compilation report can be good for your business because:
It can help you follow the tax laws and rules and support your tax filings and deductions.
It can help you build trust and credibility with your lenders, investors, suppliers, customers, or other stakeholders who may ask for or rely on your financial statements.
It can help you track your business performance, find trends and issues, plan, and make smart decisions.
A compilation report is not the same as an audit or a review, which provide higher levels of assurance and require more work by the accountant. However, a compilation report can be a cheap and useful option for small businesses that want to benefit from professional accounting services.
If you want to get a compilation report for your business, you should contact a qualified accountant who can do the service according to the standards and guidance issued by the AICPA or other relevant bodies. The accountant will agree with you on the objectives, responsibilities, and limitations of the service, and write them down in a written communication. The accountant will then compile your financial statements and give you a compilation report.
A compilation report can be a valuable tool for your business. It can help you follow tax laws and rules, talk to external parties, and improve your internal management. By hiring an accountant to compile your financial statements, you can improve your financial reporting and focus on growing your business.
Comments