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Financial Statements

Errol Chapman Professional Corporation is experienced in the preparation of financial statements and issuing "Notice to Reader" engagements.

A "Notice to Reader" financial statement – also known as a compilation engagement – is a basic requirement of all companies. It is not audited and, therefore, gives no assurance (or opinion). However, it is sufficient for those financial statements that have no requirement to report or account to any lender or other major third party. It is usually sufficient for Private Corporations that are under no obligation to issue an assurance engagement. Although the "Notice to Reader" financial statement gives no assurance, it is still given much more "weight" if the company has to seek some form of financing from a bank in comparison to a set of financial statements that are not signed off by a qualified Chartered Professional Accountant (CPA).

Our team provides quality compiling of the financial statements. We ensure that a high level of professional standards is maintained and that Generally Acceptable Accounting Standards (GAAP) are followed. We also use professional judgment in considering the measurement and disclosure of financial information to be presented on the financial statements. Our CPAs adhere to a high level of ethical standards in the preparation of financial statements. All of these combined bring a high quality to the financial statement preparation.

The preparation of financial statements must not be confused with the putting together of the financial data using accounting software packages such as Quickbooks. Usually, the bookkeeping function posts the data into the software. However, issuance of financial statements takes careful attention to the need to follow accounting principles and standards in order for them to comply with GAAP.

Our CPAs also study the financial statements and will highlight the areas where closer attention is needed, such as unnecessary high costs. To keep the functions separate from bookkeeping, our firm will obtain a trial balance from the bookkeeper and may adjust entries and accruals. We will also consider the depreciation of assets in accordance with consistency concepts as well as Capital Cost Allowances (CCA) for capital assets and categorize accounts into appropriate classes to prepare the "Notice to Reader" financial statements. These statements are also used to prepare Corporate tax returns and a final adjustment to the financial statements for the tax computed.

We will be very happy to help your small business with this engagement. Contact us by email or call (416) 402 4788.

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