FINANCIAL STATEMENT PREPARATION, COMPILATION AND REVIEWAccurate and sound financial statements are a crucial reporting tool for all San Diego County businesses. Financial statements assist businesses and their respective CEOs, CFOs and other leadership personnel in viewing an accurate “read” of the state of the their business.  But let’s not leave startups and entrepreneurs out of the mix because their financial statements also make important operating decisions, enable lending institutions to evaluate loan applications and provide investors with the necessary information to make solid investment decisions.  Revenue growth and financial performance are also a necessity for non-profit organizations, private companies and publicly traded corporations.  

Thomas Huckabee, CPA of San Diego County, performs all of the aforementioned tasks and also prepares tax returns, miscellaneous financial compilations and offers financial statement reviews.  Our services specifically cater to the needs of your business or organization.  Financial statements have a value that goes far beyond just a page of numbers because in the accounting and finance industries your company’s “numbers will tell your story.”  

Financial Statement Preparation

At Thomas Huckabee, we provide financial statement preparation and financial compilation services on a monthly, quarterly and annual basis for San Diego corporations. We provide guidance to make sure your financial presentation materials are in strict conformity with Generally Accepted Accounting Principles (GAAP) and your choice of accounting basis: the cash basis or the accrual tax basis.  When preparing financial statements, we compile all your data and arrange it into the particular standard financial statement formatting you require.  As part of our financial compilation services, we probe further into your financial data to verify there are no errors or pertinent information missing.  We also take a common sense approach view at your company to decide if your entity could benefit from other types of accounting services. For instance, we may discover, after careful review, that your corporation could use assistance with monitoring your internal controls.    

Financial Statement Compilation

A financial statement compilation conducted by a Certified CPA like Thomas Huckabee includes:

  • Financial statements prepared by Thomas Huckabee, CPA- an expert in accounting practices and principles of your particular industry and type of entity.     
  • After your financial statements are prepared, we will scrutinize them and determine if they are in compliance with standard GAAP and SEC reporting regulations. As a note, prior to the compilation process completion final stages, no business advice or opinion is expressed about information you have provided.
  • In order to for your ongoing financial statement review process to continue seamlessly in the future, we make it a priority to be very familiarized with all varieties of your accounting entries, transactions and methods, and how they are recorded and stored.      

Financial Statement Review

Thomas Huckabee, CPA’s financial statement review process consists of analytical procedures as applied to financial statements of entities.  In essence, the procedure is as follows:

A private entity hires a CPA to perform a thorough review of its existing financial statements and issue its own report, which provides the minimum amount of assurance that no material modifications or changes to financial statements are required.  In most cases, financial statements are your company’s self-generated statements (not prepared by an independent accountant, CPA or auditor.)  This means that Thomas Huckabee must have a thorough understanding of these statements and enough information to assume responsibility for them.  All official reports must be in strict compliance with applicable accounting frameworks such as GAAP or International Financial Reporting Standards (IFRS.)  

Please note that your company has the option to choose what type of statements are contained in your official filings.  Financial statement reviews fall within a spectrum.  For example, your company may choose to use a simple financial compilation, which is the least costly and provides no assurance.  Or, your company may choose an alternate compilation process whereby you will receive more extensive assurance along with a complete audit, which certifies the financial position and accuracy of your reporting numbers.  In most cases a review with limited assurance is adequate enough for your creditors and your business. If further assurance is required, then a company may need to enlist our services to perform a full audit.

Because there is often confusion, we just want to identify the differences between a financial statement review and a financial compilation.  One significant factor is that your CPA must be independent of the client during the review process. A second important difference is that all the appropriate notes must be included in the statements that were reviewed.  

The Financial Statement Review Process

Thomas Huckabee, CPA provides reviews concerning financial statement matters as they relate to record keeping practices, general accounting policies, accounting principles/practices and changes to business activities.  We will also complete your bank statement reconciliations if you request this service.   We then utilize our own analytical expertise, which is specifically designed to catch any unusual trends or items in your financial statements that may need a further explanation.  Our financial reviews are an intricate way to determine if your financial statements make sense without having to conduct a full independent audit.  

Our financial statement compilation and review checklist uses the most comprehensive GAAP disclosure guidelines, which identify the documents and areas of importance essential to your business’ functioning on a monthly, quarterly or annual basis. These areas consist of the following:

  • Review & Reconciliation
    • Regular Bank and Account Reconciliation
    • General Ledger Posting Accuracy
  • Payroll Review & Quarterly Reporting Compliance
    • Monthly/Quarterly Reports
    • Work Compensation Audits
    • Year End Reconciliations
    • Annual Reports
    • W-2 Generation
    • Income Withholding Orders
  • Asset List/Depreciation Reporting & Loan Amortization Schedules
  • Financial Statement Generation
    • Income Statements
    • Balance Sheets
    • Cash Flow Statements
  • Taxes
    • Corporate Taxes
    • Industry-Specific Taxes (Sales, Excise)
  • Budgeting (Monthly, Quarterly, Annually or Ad Hoc)
  • Human Resources Issues and Compliance        

Contact Thomas Huckabee, CPA today to discuss how we can prepare, review, compile or audit your entity’s annual financial statements.  Solid financial statements are not only legally required, but they tell a coherent story about your company’s business model, strategy, risks and performance.