Financial Statements Preparation and Compilation Engagement Report

Financial statements are essential documents that provide a comprehensive overview of your business’s financial health. They include the balance sheet and income statement, which are crucial for making informed business decisions, securing financing, and complying with regulatory requirements.

Who Needs Financial Statements?

  • Small businesses seeking clarity on their financial position
  • Self-employed professionals requiring financial documentation for loans or business planning
  • Professional corporations needing to meet regulatory reporting requirements
  • Businesses seeking investment or preparing for sale/acquisition
  • Companies with external stakeholders such as investors or lenders

Our Financial Statements Preparation Services

MAQ CPA prepares financial statements tailored to your specific business needs:

  1. Financial Information – Prepare balance sheet, income statements, and note to financial information in compliance with generally accepted accounting principles (GAAP)
  2. Compilation Engagement Report (formerly, NTR – Notice to Reader) – Basic financial statements prepared from your records that provide no assurance to the readers

Compliance Considerations

While private corporations in Canada aren’t always legally required to have audited financial statements, various circumstances may necessitate professional financial statement preparation:

  • Banking Requirements: Most financial institutions require professional financial statements for lending purposes
  • Shareholder Agreements: May stipulate specific financial reporting requirements
  • Industry Regulations: Certain industries have mandatory financial reporting standards
  • Tax Compliance: Well-prepared financial statements form the foundation for accurate tax filings

Non-compliance with financial reporting requirements when mandated may result in difficulties securing financing, potential legal issues with shareholders, and complications in tax filings.

Why Choose Our Firm for Financial Statement Services

  • Expertise: We have experience with GAAP and CRA compliance
  • Timely Delivery: We work within your deadlines to ensure financial information is available when needed
  • Technology Integration: We leverage advanced accounting software for efficiency and accuracy
  • Clear Communication: Complex financial information presented in understandable terms
  • Transparent Pricing: Clear and competitive pricing with no hidden fees

Frequently Asked Questions

What’s the difference between compilation, review, and audit services?

Compilation (formerly, Notice to Reader) involves preparing financial statements without verification. Review engagements provide limited assurance through analytical procedures. Audits offer the highest assurance level with detailed testing and verification of financial information.

Audit: High assurance with extensive verification.

Review: Moderate assurance with analytical procedures.

Compilation: No assurance, primarily for internal use or tax filing.

Do I need audited financial statements for my small business?

Typically, no, unless required by shareholders, lenders, or regulatory bodies. Compiled or reviewed statements are usually sufficient.

Can well-prepared financial statements help reduce my tax burden?

Yes. Professional financial statements help identify all legitimate deductions and ensure compliance with tax regulations, potentially reducing your overall tax liability.

Do I need financial statements if I’m a sole proprietor?

While not always legally required, properly prepared financial statements provide valuable insights into your business performance and are essential for loan applications and business planning.

What information is needed to prepare financial statements?

You’ll need financial records such as income and expense statements, bank statements, payroll records, and details of assets and liabilities.

Ready to Get Accurate Financial Statements?

Contact MAQ CPA today to discuss your financial statement requirements. Our team is ready to ensure your financial statements are accurate, compliant, and insightful.

Email: info@maqcpa.ca
Phone: (416) 901-4126