Professional Financial Statement Compilation Services

Financial statement compilation is a service where accounting professionals assist in preparing financial statements without providing assurance on their accuracy. This is the most basic level of service CPAs offer related to financial statements, where we organize your financial information into standard formats that comply with accounting principles.

During a compilation, we arrange your data into proper financial statements, but we don’t verify the information or provide an opinion on its accuracy. Unlike audits or reviews, compilations don’t involve testing procedures or obtaining independent verification. This makes compilations an efficient, cost-effective option for businesses that need professional financial statements but don’t require the assurance levels of more extensive services.

Financial statement compilations are primarily used for internal management decisions and to meet basic third-party requirements like loan applications. They provide organized financial information in a professional format that helps business owners understand their financial position.

Compilations serve multiple purposes across different business scenarios. Lenders may accept compilations for smaller loans or existing credit relationships. Business owners often use compilations to track performance trends, make operational decisions, and plan for future growth. They’re also useful for satisfying partner or investor requests for financial information when formal assurance isn’t required. For smaller organizations or those with straightforward operations, compilations provide sufficient financial clarity without the additional cost of more comprehensive services.

Yes, a CPA must issue a compilation report to ensure compliance with professional standards. Only licensed CPAs have the authority to provide compilation services that adhere to the standards established by the American Institute of Certified Public Accountants (AICPA).

The AICPA’s Statements on Standards for Accounting and Review Services (SSARS) specifically governs compilation engagements, requiring specialized knowledge and professional judgment. While non-CPAs can help prepare financial statements, they cannot issue the formal compilation report that states the statements were compiled in accordance with professional standards. This CPA requirement ensures quality control and professional oversight in the compilation process. At Dimov Tax, all our compilation services are performed by licensed CPAs who maintain the highest professional standards.

Financial statement compilation services typically range from $1,000 to $5,000, depending on your business size and complexity. This makes compilations significantly more affordable than reviews or audits while still providing professionally prepared financial statements.

Several factors influence the final cost of your compilation service. The organization of your accounting records plays a major role—businesses with well-maintained books require less preparation work. Industry-specific requirements can add complexity, as can the number of accounts and transactions that need processing. Additional requested schedules or supplementary information will also impact pricing. At Dimov Tax, we provide transparent, customized quotes based on your specific situation rather than one-size-fits-all pricing, ensuring you receive exactly the service level you need.

A compilation is a service level (preparing statements without verification), while consolidated financial statements combine multiple entities’ financials into a single report. These are different concepts that address separate financial reporting needs.

In a compilation engagement, we organize your existing financial data into proper statement format without testing or verification procedures. Consolidated financial statements, however, represent a specific type of financial report that combines parent and subsidiary companies’ financial information, eliminating intercompany transactions to show the overall economic entity. A parent company might request compilation services for consolidated statements, meaning we would help prepare the combined entity reports without providing assurance. The consolidation process requires specialized accounting knowledge to properly eliminate intercompany activities and present the group of companies as a single economic entity.

Combined financial statements should be used when you need to present multiple related entities under common control as a single economic unit. This approach is ideal when separate legal entities operate as a unified business group.

Combined statements differ from consolidated statements in that they aggregate entities that may not have a parent-subsidiary relationship but share common ownership or management. These statements are particularly valuable for family-owned business groups, real estate investors with multiple property LLCs, or professional service firms with various practice entities. Combined statements provide a comprehensive view of the entire business enterprise’s financial position and performance, helping owners make strategic decisions across their business portfolio. They can also strengthen loan applications by demonstrating the full financial strength of related entities rather than showing each component separately.