Preparation of Financial Statements as per SSARS: A Comprehensive Guide

19-03-25

What is Preparation of Financial Statements as per SSARS?

The Statements on Standards for Accounting and Review Services (SSARS) establish guidelines for CPAs when providing financial statement preparation, compilation, and review services. The Preparation of Financial Statements under SSARS No. 21, Section 70 allows accountants to assist businesses in preparing their financial statements without providing assurance or verification. This service is particularly useful for small businesses, startups, and private companies that require accurate financial reporting but do not need a full audit or review.

How is Preparation Different from Compilation?

While preparation and compilation services both fall under SSARS, they serve different purposes:

Aspect	Preparation of Financial Statements	Compilation of Financial Statements
Scope	Basic financial statement preparation	Involves organizing financial data without assurance
Independence	Not required	Not required
CPA’s Role	Organizes and prepares financial statements but does not verify information	Assists in presenting financial statements based on client data
Engagement Letter	Required	Required
Assurance Provided	No assurance or verification	No assurance but more formalized presentation
SSARS Section	SSARS No. 21, Section 70	SSARS No. 21, Section 80

In preparation, an accountant prepares financial statements using the client’s financial data but does not offer an opinion or provide assurance. In compilation, accountants assist in presenting financial data but do not verify its accuracy.

Who Uses Preparation of Financial Statements?

The preparation of financial statements is valuable for:

Small businesses that need organized financial data for management purposes
Startups seeking funding and needing structured financial reports
Internal company use for tracking financial health
Banks and lenders who require financial statements but do not demand assurance
Tax purposes, where financial reports are necessary for filings
Investors or stakeholders who need financial insights without requiring an audit

Services Offered by 360 Accounting Pro Inc.

360 Accounting Pro Inc. specializes in financial statement preparation under SSARS to help businesses manage their financial records efficiently. Our services include:

1. Preparation of Financial Statements

Organizing financial data into Balance Sheets, Income Statements, and Cash Flow Statements
Ensuring compliance with SSARS guidelines
Customizing reports based on business needs

2. Bookkeeping and General Ledger Management

Keeping records updated for accurate financial reporting
Categorizing and reconciling transactions

3. Management Reporting

Preparing custom financial reports for internal decision-making
Providing real-time financial insights

4. Tax-Ready Financial Statements

Structuring financial records for easy tax filings
Ensuring compliance with IRS and state regulations

5. Financial Data Review and Adjustments

Identifying missing transactions and errors
Adjusting financial statements to align with GAAP or tax requirements

Why Choose 360 Accounting Pro Inc.?

Expertise in SSARS guidelines – Our team ensures that your financial statements meet professional standards.
Customized financial reporting – We tailor reports to your business needs.
Affordable solutions – Get professional preparation services without the cost of a full audit.
Accuracy and efficiency – We help businesses maintain precise financial records.

Conclusion

Preparation of financial statements under SSARS is an essential service for businesses that need organized financial reporting without the complexities of an audit or review. Whether you’re a small business, startup, or lender, 360 Accounting Pro Inc. provides accurate, reliable, and SSARS-compliant financial statement preparation services.

Need assistance with financial statement preparation? Contact 360 Accounting Pro Inc. today to ensure your financial records are structured, compliant, and ready for business success.

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