Year End Services for Incorporated Businesses and Not-for-Profit Organizations
We have experience with providing accounting services for a variety of private, farm, and not-for-profit organizations. Our objective is to provide you an accurate view of your organization’s financial position and performance for the period involved. This information is useful for future planning and in meeting the needs of all the users involved. Whether your organization has one shareholder or director, or several directors, you cannot afford not to have timely and accurate financial statements so you know where you are at, where you have been, and what important decisions need to be made in the future.
Many people ask what is the difference between the different levels of financial statements and what value is it to my organization? There are three types of period end engagements that we can help you with:
- Audit – An audit is the highest level of assurance so it involves sampling of assets, liabilities, revenues, or expenses. We have an obligation to ensure that the financial statements are in harmony with the applicable Canadian generally accepted standards framework and they are free of material misstatement.
- Review Engagement - A review engagement is a lower level of assurance than an audit provides so it does not involve sampling of assets, liabilities, revenues, or expenses. We do, however, have an obligation to ensure that the financial statements are in harmony with the applicable Canadian generally accepted standards framework. Further detailed evaluation is done on an analytical basis to determine that the financial information provided by management makes sense and is plausible.
- Compilation – For most organizations, unless a lender, Government department, or an agency requires an audit or review engagement, a compilation of financial statements will be sufficient as a lower cost alternative. Because there is no checking, sampling, and minimal analytical work done there is no assurance that the financial statements are free from material misstatement, or are in compliance with the applicable Canadian generally accepted standards framework. We rely on information that you provide us and we want to ensure it makes sense.
As there are considerable differences in how various accounting firms prepare compilations, the ones we do are provided with some notes and disclosures that are most important to you and the users.
Corporate Tax Planning
We are all interested in minimizing our overall tax burden and for this reason, we do a detailed analysis of your personal and company taxes, if applicable, you may have to pay. We look at what strategy is optimal for you whether they are additional wages or dividends if you also own a small business, and how these balance to with your available tax deductions and exemptions. We also look at wage splitting with shareholders of the organization with these things in mind to ensure your tax burden is the least it can be.
Should the need arise, we can represent you to federal and provincial tax authorities in terms of questions they may ask, clarification, or even if they audit your tax return. To keep this process worry free for you we will advise you what steps if any, that you may need to consider, or additional documentation that may be required.