BASIC FINANCIAL STATEMENT PREPARATION
Intended for business owner's use to manage the business (similar to what an in-house controller or CFO would provide for management in a larger company)
May fulfill some lenders' documentation requirement for small loans
No formal report issued on the financial statements
If you decide to have a CPA prepare you financial statements, he can do so in any frequency that is most useful for you. Typically, the service is performed in conjunction with bookkeeping or transaction processing services and can be monthly, quarterly or annually. The financial statements are prepared in accordance with an acceptable financial reporting framework. If you're not sure which reporting framework to use, your CPA an explain the pros and cons of each and the best fit for your business.
The financial statement preparation service is primarily intended for your own use to have current information on the financial standing of your business and to make decisions accordingly. In essence this service is no different from what an in-house controller or CFO would provide to management in a large company.
You can share your financial statements with outside parties but on each page, your CPA will include a notice that "no assurance is provided " on the financial statements.
Because your CPA will prepare your financial statements directly from the records you provide, the CPA will not verify the accuracy or completeness of the information and is not required to issue a formal report on the financial statements.