Financial Statements, Compilation Engagements and Management Reporting
Year-end compilation engagement financial statements for your lender and the CRA, plus monthly management reports that show how the business is really doing.
Financial Reporting Services That Lenders and Owners Can Rely On
Financial statements do two jobs. At year-end they are the formal record your bank, investors and the CRA rely on. During the year they are a management tool that tells you whether you are on track. Most small businesses get the first and miss the second.
Applying for financing? Our guide to small business loan requirements in Canada lists the statements and ratios lenders expect.
For year-end, we prepare compilation engagement financial statements under Canadian Standard on Related Services (CSRS) 4200, which replaced the old Notice to Reader. Your statements include a balance sheet, income statement and notes, with a compilation engagement report from our CPA team. They are ready for your T2 return and for your lender’s annual review.
Not sure which level you need? See our comparison of a compilation engagement vs review engagement.
During the year, we turn your bookkeeping into monthly management reports, including profit and loss against budget, cash flow and the key ratios for your industry, so problems show up in weeks rather than at year-end. For forward-looking planning, pair this with our fractional CFO services. New to reading statements? Our guide on how to read a balance sheet walks through each line with a sample for a small corporation.
What Our Financial Reporting Services Include
Statutory year-end statements and practical monthly reporting, built from the same clean set of books.
How Our Financial Reporting Process Works
Understand the Audience
We confirm who uses your statements, such as the bank, investors, the CRA or you, and what each needs.
Close the Books
Accounts are reconciled and year-end or month-end adjustments posted.
Prepare and Review
Statements are compiled, reviewed by a CPA and checked against the prior period.
Walk-Through
We take you through the results in plain language and flag anything that needs action.
Why Business Owners Choose Targeted Accounting
- CPA-led team: every file is reviewed by an accounting manager, not just a junior bookkeeper
- Cloud-first: QuickBooks Online, Xero, Wagepoint, Hubdoc, Dext and Plooto
- Based in downtown Toronto, serving businesses across Canada remotely
- One team for bookkeeping, payroll, tax and advisory, so nothing falls between providers
- Clear monthly deadlines and a named contact who knows your file
Frequently Asked Questions
A compilation engagement is a service where a public accountant helps management prepare financial statements from the business’s records without auditing or reviewing them. In Canada it is governed by CSRS 4200, and the accountant issues a compilation engagement report with the statements.
The Notice to Reader (Section 9200) was replaced by CSRS 4200 Compilation Engagements for financial statements for periods ending on or after December 14, 2021. The new standard requires more documentation and a note describing the basis of accounting used.
Most private small businesses don’t. A compilation engagement is usually enough for the CRA and many lenders. A review or audit is typically needed only when a lender, investor, franchisor or regulator requires it. We will tell you if that applies.
The balance sheet shows what the business owns and owes at a point in time. The income statement shows revenue, expenses and profit over a period. The cash flow statement shows where cash came from and where it went.
Monthly. A short monthly review of profit, cash and receivables catches problems early, while year-end statements are mainly for compliance and lenders.
CONTACT US TODAY!
Bookkeeping, payroll, tax and CFO support from one CPA-led team, with your books kept accurate and your filings on time
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Helpful Guides From Our Blog
- Year-End Accounting Checklist for New Canadian Corporations
- How to Read a Balance Sheet, With a Small Business Balance Sheet Example
- Compilation Engagement vs Review Engagement: Which Statements You Need
- Small Business Loan Requirements in Canada: What Lenders Want to See
- Bookkeeping Basics for Canadian Small Business Owners
- Starting, Selling or Closing a Business in Canada: The Tax and Bookkeeping Side