Compiled financial statements (for loans) prepared from your books in the standard format banks and bonding companies ask for, ready when the application deadline hits.
A bank asks for financial statements and suddenly a loan that seemed straightforward stalls. The internal reports don't look like what the lender expects, the balance sheet has accounts nobody can explain, and the request sits in someone's inbox for three weeks. Compiled statements exist to solve exactly this, and having them ready changes how the conversation goes.
A compilation means the statements are prepared from information you provide, presented in the standard format lenders recognize. It is not an audit and not a review. No independent verification is performed and no opinion or assurance is expressed about the numbers. What you get is a properly organized, professionally prepared set of statements. Companies across Lexington and Kentucky use them for loan applications, bonding, renewals, and covenant reporting.
The package includes a balance sheet, income statement, statement of cash flows, and statement of changes in equity, along with notes covering the accounting policies used, debt terms, related party transactions, commitments, and anything else a reader would reasonably need to interpret the numbers. Comparative prior-period figures are included where they're available. Everything is prepared from your records and presented in the standard format. The compilation report itself accompanies the statements and states plainly what was and wasn't done, including that no assurance is provided. Lenders read that report first, so being clear about it up front avoids a misunderstanding later in the process.
There are three levels of service on financial statements and they are not interchangeable. A compilation presents your information in proper form with no assurance attached. A review provides limited assurance through analytical procedures and inquiry. An audit provides the highest level of assurance through substantive testing. This firm prepares compiled statements only. We do not perform reviews or audits, and we do not offer attest services of any kind. If your lender or bonding company specifically requires a review or an audit, you need an independent CPA firm for that engagement, and we'll tell you so directly rather than letting you find out late.
Compiled statements are only as good as the records behind them, which is why the first pass often finds work to do. Accounts that were never reconciled. Loan balances that don't match the lender's amortization schedule. Fixed assets on the books that were sold two years ago. Equity accounts that stopped making sense several years back. Cleaning this up before the statements are prepared is not optional, because a lender reviewing your package will notice, and questions about basic accuracy undermine the whole submission. If your books need work first, we'll say so and give you a realistic sense of the time involved rather than a comfortable one.
Most companies need compiled statements on a recurring basis rather than once. Annual loan renewals, bonding renewals, and quarterly covenant reporting all come with deadlines that show up on the same calendar every year, and the companies that scramble are usually the ones treating each request as a surprise. Working from a schedule set in advance means the statements are prepared before the request arrives rather than after. Where your loan agreement includes financial covenants, we track those ratios through the year so a potential breach is a conversation you have with your banker early, on your terms, instead of a disclosure you make after the fact.
Often yes, especially for smaller credit facilities and existing relationships, but it depends entirely on the lender and the loan size. Ask your banker which level they require before anything gets prepared. If they need a review or an audit, that requires an independent CPA firm, and we'll point you in that direction rather than take on work we don't do.
No. This firm does not prepare or file income tax returns. We handle bookkeeping, controller, and CFO-level work, and we refer income tax work to outside CPA firms. When those returns are being prepared, we make sure the accountant has clean books and complete records to work from, which usually makes their job faster.
Prior years are possible if the underlying records exist and are reasonably complete. How long it takes depends almost entirely on the state of those records. If several years need cleanup first, that's real work and we'll scope it honestly before starting. Book a consultation and bring what you have; we can assess it quickly.
Other work in this area that tends to come up in the same conversation.
A consistent set of statements and supporting schedules delivered on the same date each month, with a note on what changed and why.
Read moreA forward look at what's coming in and going out, so payroll, tax payments, and big purchases stop colliding in the same week.
Read moreAn annual plan built from your history and your goals, broken down by month so it's something you can measure against.
Read moreBook a consultation. Bring whatever you have, even if it is a mess, and we will tell you straight what it needs.
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