Year End Accounting and Financial Reporting

Running a business is a complex job. Keeping on top of reporting requirements and deadlines with limited internal resources can make that job even more difficult. To help you focus on the day-to-day operations of your business, Method offers comprehensive suite of accounting services to assist your organization with all its year-end reporting requirements.

• Compilation Engagements

• Reviewed Financial Statements

• Audited Financial Statements

Compiled Financial Statements

A compilation engagement is the most basic year-end accounting service for a small business owners annual reporting requirements. Compiled financial statements are prepared for year end tax reporting, loans and other lending requirements, and indicate that your organization is affiliated with a CPA.

Reviewed Financial Statements

A review engagement is an essential part in facilitating growth and achieving your future business goals. Reviewed financial statements are used when obtaining financing, a business loan or bonding coverage. Banks, creditors and potential investors will often request a CPA firm to review your financial statements before lending or investing in your business.

In a review engagement, we evaluate your financial statements through a series of questions, analysis and discussion, and provide a limited level of assurance that your statements are presented in accordance with applicable financial reporting standards. In addition to a review engagement we provide a comparative benchmark analysis along with other financial indicators. This will help you interpret your financial results and improve your business decision-making process.

Overall, the review process often involves:

• Inquiries on your financial information with management;

• A strong understanding your industry and its accounting principles;

• Making inquiries related to the accounting practices and principles used by the business; and

• Performing analytical procedures to understand current-year and prior-year balances, or current-year balances outside the CPA’s expectations.

If a bank, investor or insurance/bonding company requires your organization to comply with certain loan requirements (debt covenants), a discussion around having a review or audit engagement is recommended. Businesses often use a review engagement as a stepping stone to reduce the challenges associated with a first-year audit.

Audited Financial Statements

We do not provide audit services. However, we can assist your company in navigating and understanding the audit process. An audit engagement is often required when your company is planning major financing, investing, looking to sell the business, or has to comply with some regulatory reporting requirements. An audit is often required by a bank, investor or insurance/bonding company in order to provide the highest level of confidence in your financial information to ensure it is free from any material errors. A financial institution, potential investor or purchaser may require an audit to facilitate a transaction that could help grow your business.

Having an audit is the most thorough assurance engagement, requiring considerably more work by your organization and the CPA’s due to the additional information requests, physical inspection, verification, and testing procedures required. An auditor will examine your documents, send third-party confirmations to confirm the balances and legal matters, and perform a wide array of analytical procedures.