Accounting

Year-end financial statements someone else will rely on.

Year-end financial statements your bank, landlord or investors can rely on. (Formerly called Notice to Reader.)

Is this the support you need?

For owner-managed businesses asked for financial statements by a bank, landlord, investor or funder, and for corporations that want a proper year-end set of records.

Start with the recipient’s request

Ask a lender, landlord, shareholder or funder to specify what they need. Most owner-managed businesses need a compilation engagement, the report that used to be called a “Notice to Reader”. The right engagement depends on how the statements will be used, not only on the size of the business, so a vague request for “accountant-prepared statements” is worth clarifying.

Understand the difference in assurance

A compilation does not provide assurance. A review is a distinct engagement involving limited assurance, and an audit is different again. These terms are not interchangeable. We confirm the engagement letter and the wording of the report before proceeding, so the recipient gets what they asked for.

Address the accounting questions behind the statements

Revenue, inventory, leases, related-party balances and significant transactions can need more analysis than a standard export from bookkeeping software. Raise unusual items early and keep the agreements that explain what happened. Statements that tie back to reconciled records are easier for a lender to rely on.

Turn the year-end into a repeatable process

A reporting timetable sets out who provides schedules, who resolves open questions and when a draft is reviewed. Every set of statements is reviewed by a partner before it leaves our office. Management reporting during the year can be scoped alongside the year-end work, or separately.

What your engagement may include

Year-end financial statements under a compilation engagement
Review engagements where a recipient requires limited assurance
Lender, landlord and investor packages
Year-end schedules, reporting adjustments and corporate records

The exact scope, responsibilities and proposed fees are confirmed before paid work begins. Not every item is required for every engagement.

Bring a little context to the first conversation

The recipient’s written requirements
Prior financial statements and trial balance
Ownership and financing changes
Contracts for significant transactions and supporting reconciliations

A short summary is plenty to start. Records are only requested once you’ve engaged the firm, through the secure client portal.

Questions about financial statements

Is a compilation the same as a “Notice to Reader”?

Yes. Notice to Reader is the older name. A compilation engagement is the current standard for financial statements prepared without assurance, which is what most banks and landlords ask owner-managed businesses for.

Does a compilation provide assurance?

No. It should not be described as providing audit or review assurance. If the recipient needs assurance, tell us what they asked for and we will confirm the right engagement.

Can you help with different reporting frameworks?

Yes. The partners’ backgrounds cover financial statements for private companies (ASPE), non-profits (ASNPO) and US-reporting businesses. The engagement and reporting requirements are confirmed before any work starts.

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