Financial statements are an important document for any business. Financial statements give you a bird’s eye view of your business’s financial well-being, making it a critical informative tool to make financial decisions, especially for small to medium-sized businesses across the province. It is a very cost-effective service your accountant or bookkeeper can offer, that provides you with a condensed overview of your company’s financial position without having to conduct a complex audit of your business.
By understanding the types of financial statements available, you will be able to better select the type of financial statement package that is best for you. Continue reading this resource to explore the different types of financial statements, their importance, and the value it can give you.
We will also touch on the process of creating financial statements and the benefits of working with experienced professionals such as Nasaijit.
Table of Contents:
- What are compiled financial statements?
- Differences between compiled, reviewed and audited financial statements
- What statements are included?
- How do compiled statements help you with financial planning and decision making?
- Nasaijit’ s Approach to Accurate Financial Statement Compilation
What are compiled financial statements?
Compiled financial statements are financial documents that show a company’s financial position. They are the basic financial statements prepared, and do not include an in-depth review or external audit.
Prepared by an accountant, compiled financial statements include things such as your balance sheet and income statement, which helps give you a clear picture of what is happening financially.
During the compilation process, your accountant will organize your financial information provided and put them into a digestible report. These documents can be used by businesses to help them with budgeting, reporting to stakeholders or securing funding by using them for more professional presentations and reporting.
Differences between compiled, reviewed and audited financial statements.
As noted above, compiled financial statements are the basic statements prepared without an in-depth review or external audit. As shown below, the differences between the statement options are outlined, and the benefits of each type.
Knowing the differences between compiled, reviewed, and audited can significantly aid your financial reporting decisions:
| Aspect | Compiled Statements | Reviewed Statements | Audited Statements |
| Level of Assurance | None | Limited | Comprehensive |
| Cost | Low | Moderate | High |
| Intended Use | For internal management, stakeholders, or small financing | For a moderate level of financial assurance for creditors, investors | For compliance, large-scale investors, creditors, government funders |
What Statements are included?
In our compiled financial statement package, we include the following reports.
We are also able to prepare unique financial statements for your business needs, so please reach out if you have any questions or reports in mind!
- Balance Sheet: The balance sheet shows your company’s assets, liabilities, and shareholder’s equity (net value for the shareholders) as of the report date. This can be used for a snapshot of the company’s financial health as noted below.
- Income Statement: The income statement shows your sales and operating expenses for the period prepared, along with any additional income or expenses. This will reflect your net income for the period and can be used to help with cash flow and budgeting as noted below.
Looking for someone to help you compile financial statements? Discover how our corporate tax accountants in Nunavut can help you today!
How do compiled statements help you with financial planning and decision making?
The compilation of financial statements is significant for various operational purposes:
- Budget and forecast development: Financial statements can help you create a realistic budget and forecast with regards to your current financial position.
- Snapshot of Financial Health: Financial statements allow you to see the health of your business, including information on your debts, assets, receivables, payables and net profits.
- Cash flow and expenditure management: Financial statements allow you to track your income and expenses for better cash flow management throughout the year.
- Strategic Adaptation: Financial statements can help businesses in Nunavut pivot their approach in response to economic conditions and obstacles.
Nasaijit’ s Approach to Accurate Financial Statement Compilation
We have a detailed approach to ensure that your financial statements are compiled accurately and professionally on a regular basis:
- Data Collection: Gathering relevant financial information from the company to ensure all transactions are recorded.
- Data Analysis: Reviewing the data for consistency and completeness and following up if any details are missing.
- Report Assembly: Structuring the financial data into formal statements that we can prepare and explain to you, and other users of the statements.
- Review: Verifying that the compiled statements reflect the company’s financial activities accurately.
Looking for Financial Clarity?
Compiled statements are critical for all small and medium sized businesses, boosting their financial planning and decision-making ability. By collaborating with an experienced firm such as Nasaijit, you will be able to ensure that your statements are prepared reliably and efficiently.