Financial Statements
TGA provides a comprehensive range of financial statement preparation services to businesses of all sizes.
Financial Statements
At TGA, we offer a full range of financial statement preparation services to meet the needs of businesses of all sizes. Our team is skilled in preparing financial statements for a variety of purposes, and we offer four levels of financial statement products to choose from: management use only, compilations, review engagements, and audits.
Management Use Only
A financial statement is a document that outlines an organization’s financial performance. It typically consists of a balance sheet, income statement, statement of retained earnings, and statement of cash flows. Even if a lender does not require financial statements, it is still useful for an organization to have these numbers to refer to in order to make informed decisions about its financial health.
It is important to note that if a financial statement is intended for use by third parties, it must be a compilation, review, or audit and will come with a corresponding report. If a financial statement is for management use only, it will be stamped as such.
Compilations
Compilations are the most common type of financial statements we prepare for our clients. Banks often require annual financial statements for the approval of credit arrangements, and these statements typically come with a compilation report from our firm on our letterhead. The report includes a balance sheet, income statement, statement of retained earnings, and statement of cash flows.
The compilation report confirms that we have compiled the information in the financial statements and have not completed a review or audit engagement. This is important for banks to know because it indicates that we are not providing assurance on the financial information. However, the report still indicates that the financial information is from a reputable source and is not misleading.
Review Engagements
Certain businesses are required to have more assurance on their financial statements than a compilation provides. This can be due to professional requirements or the size of their operations. If a business has significant borrowings from a bank, it is likely that the bank will ask for reviewed financial statements rather than a compilation.
While reviewed statements look similar to compilations, we are providing assurance on the numbers, which requires more time and effort on our end. This may result in higher fees for the engagement. In our report with the reviewed financial statements, we inform users about the level of assurance being provided.
Audits
Audited financial statements are the most assurance you can get on your financial information. They provide the highest level of assurance and are often required by law or regulation for certain organizations.
At TGA, we specialize in preparing audited financial statements for non-profits. This includes daycares, condominiums, non-profit housing, and registered charities. An audit involves a detailed review of an organization’s financial information and includes testing of transactions and internal controls.
In our audit report, we express an opinion on whether the financial statements are presented fairly in accordance with generally accepted accounting principles. Audited financial statements can provide stakeholders, such as donors and grantors, with confidence in the organization’s financial information.
