Financial Reporting September 10 2019 Turner Moore Turner

Financial Reporting September 10, 2019 Turner. Moore

Turner. Moore

There are 4 types of financial reports • • Bookkeeping/Income Tax Use Compilation Review Audit Turner. Moore

Bookkeeping/Income Tax Use • To prepare income tax returns • To prepare tax reports such as HST returns • Internal Use by management Turner. Moore

Keep Receipts- for adequate Books and Records Turner. Moore

Benefits of Bookkeeping Financial Statements • Allow monitoring of success of business • Banks may require to monitor loan covenants Turner. Moore

Drawbacks of bookkeeping Financial Statements • Not generally in accordance with accounting standards • If not prepared by a CPA inaccuracies may result due to not knowing accounting standards Turner. Moore

Compilations • The most common statements prepared by small business • May be prepared by anyone, do your due diligence, check credentials • If prepared by a CPA must meet professional standards Turner. Moore

Drawbacks of compilations • Don’t have to be in compliance with accounting standards • Depending on preparer may be little more than your bookkeeping statements on someone else's letterhead Turner. Moore

Changes are Coming • Within 2 years the compilation requirements are being raised, you may expect more questions by your CPA Turner. Moore

Reviews and Audits • Statements must be prepared in accordance with Accounting Standards for Private Enterprise • Mostly as a requirement of lending institutions as a part of borrowing agreements – these statements lend a higher assurance for lenders when they review the statements • May be required by various charity or government regulations Turner. Moore

Drawbacks of Reviews and Audits Cost Audit Review Compilation Turner. Moore

Choosing the right accountant Turner. Moore

Benefits of Reviews and Audits • Higher confidence that the statements are presented accurately and are in compliance with accounting standards • Useful when looking for financing • Investors and prospective purchasers have more confidence in the financial statements Turner. Moore

You want the job done right? Cost Knowledge Accuracy Get the job done right! Turner. Moore

Choosing an accountant • There are no rush jobs in accounting – haste makes waste! • Services offered • Experience • Be wary of price, you may get what you pay for • References available? Turner. Moore

• Choose a Chartered Professional Accountant! Turner. Moore