Unlike an audit or independent review, a compilation does not involve assurance procedures. The accountant compiles the financials based on information provided by management and ensures the statements are presented in accordance with relevant financial reporting standards.
- What Does the Process Entail?
Our financial statement compilation service includes the following key steps:
We begin by collecting your general ledger, trial balance, bank statements, income records, expense breakdowns, loan schedules, payroll records and other relevant financial data.
We review the information for completeness and consistency. Any missing items or discrepancies are flagged, and we work with you to resolve them. Basic accounting adjustments may be applied where appropriate (e.g. accruals, depreciation, asset classifications).
We prepare a full set of financial statements that typically include:
• Statement of Financial Position (Balance Sheet)
• Statement of Profit and Loss and Other Comprehensive Income
• Statement of Changes in Equity
• Cash Flow Statement
• Notes to the Financial Statements
These are formatted in line with the applicable accounting framework, such as IFRS for SMEs, IFRS or another standard as required.
A compilation report is issued, stating that the financials have been prepared based on information provided by management. No audit or assurance is expressed.
- Key Use Cases for Accounting Memos
Who Needs a Compilation?
Financial statement compilations are ideal for:
• Small and medium-sized businesses (SMEs)
• Sole proprietors and partnerships
• Companies not required by law to have audited financials
• Businesses needing financials for bank loans, investor reviews or compliance
• Startups applying for grants or tenders
