Financial Statement Compilations

Compiled financial statements may be useful when a business needs organized financial reporting for a specific purpose, but does not require an audit or review.

A compilation may be requested for:

• Lender or financing requirements
• Internal business reporting
• Investor or ownership reporting
• Management reporting
• Certain third-party requests
• Year-end financial statement presentation
• Supporting business tax planning or compliance

The appropriate level of service depends on the purpose of the financial statements, the needs of the user, and any third-party requirements.

A compilation helps present business financial information in a formal financial statement format. This may include a balance sheet, income statement, statement of cash flows, and related notes when appropriate.

The financial statements are based on information provided by management. A compilation does not provide assurance, and it is not the same as an audit or review.

For many business owners, compiled financial statements can help create a clearer picture of the business’s financial position, support lender conversations, and improve internal reporting.

• Compiled financial statements
• Balance sheet presentation
• Income statement presentation
• Statement of cash flows when appropriate
• Related financial statement notes when appropriate
• Compilation report preparation
• Review of management-provided financial information for presentation purposes
• Coordination with business tax planning or compliance when appropriate
• Communication with lenders or third parties regarding the scope of the compilation when appropriate

• Review of the third-party verification request
• Review of available supporting documentation
• Income verification letters when appropriate
• Self-employment verification letters when appropriate
• Business ownership verification letters when appropriate
• CPA letters for lenders, underwriters, landlords, agencies, or other third parties
• Communication regarding what can and cannot be stated in the letter
• Preparation of a professional CPA letter based on supportable information

A financial statement compilation is not an audit or review. Snedeker Financial Solutions does not provide assurance through a compilation engagement.

Management is responsible for the financial information provided, the accuracy and completeness of the records, and the underlying accounting data.

If a lender, investor, or third party requires assurance, they may request a reviewed or audited financial statement instead. In that case, a compilation may not be sufficient

For select business clients, a compilation can help organize financial information in a more professional and consistent format.

This may help business owners:

• Better understand financial results
• Present information more clearly to lenders or stakeholders
• Support financing or reporting conversations
• Improve coordination between financial reporting and tax compliance
• Identify areas where bookkeeping or recordkeeping may need improvement

A compilation does not guarantee financing approval or business outcomes, but it can support clearer reporting and more organized financial communication.