One of the most important aspects of any business is the finances, which provide a lifeline for success. Obviously, no business is going to remain in service for any significant amount of time without having the discipline to make money and successfully put that money to use. This fiscal responsibility is critical to providing a continuous income source, ensuring the company not only has the funds to successfully pay their employees, but also generate enough money for operating expenses and overhead.Â
There are a number of ways to evaluate a business but the financial health of an organization is important to business owners, stockholders, employees, and consumers. While the latter will only see public reports distributed or media driven access and analysis the preceding have multiple ways to analyze their current status. For small business owners especially, finding a reliable method to determine the state of their well being can be extremely beneficial.
Compilations are one of those methods.Â
What is a Compilation?
A financial statement compilation
is the assessment from an outside agency evaluating either an individual period, project or summation or a further in-depth look into a fiscal year or longer time period.
These are the lowest level of review in terms of accuracy, depth and breadth of a look into the subject financial history but can provide important information for all involved parties. Other, more thorough methods include a financial review or audited financial statement.
There are three main benefits of a compilation including - time, cost, and use. Each is directly correlated with the use for a business but can also be associated with personal accounts.
Benefits of a Compilation - TIME
The time to complete a compilation is generally quicker than that of a review or audited report. For a small business in need of an operational loan to function, getting a financial analysis completed in a quick and efficient method is important.
Benefits of a Compilation - COST
Compilations are typically less expensive than any of the other review levels. For brand new businesses and those which hope to be fiscally responsible, a compilation is a good source of evaluation with a good return on their investment.
Benefits of a Compilation - USE
A quick, efficient review of the financial status for a company can be completed with a compilation. Also, compilations are utilized instead of an audit or review
for a simple change in accounting methods or for loan applications to some financial institutions.
Contact the experts at Bloch, Rothman, and Associates
who can provide a compilation for your business or personal situation in addition to answering any questions regarding individual or business income taxes. Are associates also can assist with a variety of potentially different bookkeeping options which may be suitable for your needs. A full detailed review of your financial or tax situation can be completed in addition to resolution issues. All services, including free of charge E-filing options
will be completed in a timely manner, depending on your restrictions and potential tax deadlines. Whether you need a simple explanation on a random tax form or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us
for a free, no obligation consultation.