Accurate financial statements underpin nearly every business decision, from filing your corporate tax return to applying for a bank loan. If you need clear, professionally prepared financial statements without the cost and scope of an audit or review, enlist a trusted chartered accountant in Markham at HSM.
At HSM, our compilation engagement services in Markham take the financial information you provide and present it in cohesive, well-organized statements. With reliable statements, you and other decision-makers can focus on running your business, meeting filing obligations, and planning for growth with confidence.
A compilation engagement is a professional accounting service in which a chartered professional accountant (CPA) assists management in preparing financial information, most often annual financial statements, using the records and information supplied by the business. Compilation engagements in Markham are performed under Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, and require a professional with the right knowledge and experience.
Unlike audits and review engagements, a compilation engagement provides no assurance. The accountant does not verify or audit the underlying records, and the accompanying Compilation Engagement Report states that no audit or review was performed. CSRS 4200 replaced the former Notice to Reader standard, and compiled financial statements now include a note describing the basis of accounting applied, so readers can see how the figures were put together.
The main goal of a compilation engagement is to present your financial data in a clear, consistent, and professional format. Compiled financial statements commonly support corporate income tax filings, give owners and shareholders an annual picture of the business, and provide lenders or other third parties with the financial information they request when an audit or review is not required.
The compilation process supports financial decision-making by organizing results into a balance sheet, income statement, and supporting notes that management can compare year over year. For many owner-managed and private businesses, a compilation engagement is the most cost-effective way to maintain professionally prepared financial statements.
The modern business environment demands timely and accurate information. Even when outside assurance isn’t required, businesses, their bankers, and the Canada Revenue Agency all rely on carefully prepared, consistently presented financial statements.
Comprised of highly-skilled professionals, our team compiles financial information with your specific needs in mind. You can trust our Partners to be highly involved in every compilation engagement, delivering the highest quality of work and upholding ethical standards and objectivity at all times.
Our service goes further than the compilation itself. Before we begin, we agree with you on the purpose of the financial information, its intended users, and the basis of accounting to be applied. Throughout the engagement, we review the information you provide for anything that appears incomplete or misleading, discuss any adjustments with you, and offer consultations on your day-to-day accounting needs, helping us identify potential risks and opportunities in your business.
With the move from Notice to Reader to the current compilation standard, and ongoing changes in tax filing requirements, we know you may not have enough time to keep up with every development. We are here to help.
Our commitment to high-quality service responds to this challenge. Our team continuously updates its knowledge base, so your compiled financial statements reflect current professional standards and best practices, helping your organization stay compliant and on track toward its goals.
The following are some of the compilation services provided by our firm:
- Annual financial statement compilation; preparing a balance sheet, income statement, and notes from the records you provide
- Basis of accounting disclosure; describing the accounting basis applied so readers can interpret the statements correctly
- Compilation Engagement Reports; issuing the practitioner’s report that accompanies your compiled financial statements under CSRS 4200
- Corporate tax return support; using compiled statements to support T2 filings and related schedules
- Financial statements for lenders and stakeholders; presenting the financial information requested by banks, shareholders, and other third parties
- Year-end adjustments; recording accruals, amortization, and other entries needed to complete your statements
- Bookkeeping assistance; organizing your records ahead of year-end so the compilation runs smoothly
Guidance on when an audit or review engagement may be more appropriate
