Financial statements for bank
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: Our bank is reviewing our commercial loan and wants financial statements for our business prepared by our an accountant. You prepared our tax returns and helped us set up Quickbooks but have not done any other accounting for us. Do these statements need to be audited and how much would this cost?
A: Yes, financial statements are commonly prepared for this purpose and generally can be compiled by extracting data from your existing accounting system and making some adjusting entries. These statements do not need to be audited but rather are accompanied by a review or compilation letter. Depending on the complexity of the bank's requirements, this would likely cost more than the standard $150 fee. After talking with the banker, I will be able to give a clear description of the time required, but estimate 2-3 hours at this point.
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