A compilation does not include performing inquiries of management or performing any analytical or other procedures ordinarily performed in a Review or Audit. Compiled financial statements generally range in costs from $800 – $3,500 based on the size and complexity of your company and can take 1-2 weeks to complete.

Do nonprofits need financial management?

Healthy nonprofit organizations employ financial management practices that build stability and flexibility, both today and in the future. Nonprofit organizations impact communities and individuals by delivering services, providing advocacy, and building community.

How much does a financial review cost for a nonprofit?

The price for an independent audit varies by region and nonprofit size. For large nonprofits in major urban areas, fees can exceed $20,000. Fees in the ballpark of $10,000 are common for small nonprofits.

What is included in a financial compilation?

A compilation consists essentially of presenting information obtained from a client in financial statement format. There is no assurance being provided by the accountant. A compilation does not contemplate the accountant performing inquiry, analytical procedures or other procedures.

What is the difference between a nonprofit and a profit organization?

A for-profit can raise money from private investors, for which it must give equity or dividends to shareholders; ultimately, a return on investment is expected. A nonprofit, on the other hand, can seek donations from individuals, foundations and corporations.

How does a compilation work for a nonprofit?

A compilation provides no assurance on an organization’s financial statements. The CPA takes financial data provided by the nonprofit and puts them in a financial statement format that complies with generally accepted accounting principles. There are no testing or analytical procedures performed during a compilation.

Do you need a financial statement review or compilation?

If you need a financial statement review or compilation, this guide will help you through the process. Reviewed financial statements can be required by regulation or because your bank asks for them. This Ultimate Guide to Financial Statements Review and Compilation is a handbook of useful facts.

How is a nonprofit financial statement compiled by a CPA?

The CPA takes financial data provided by the nonprofit and puts them in a financial statement format that complies with generally accepted accounting principles. There are no testing or analytical procedures performed during a compilation.

What happens during a nonprofit financial statement review?

During a review, the auditor examines the financial statements but does not conduct an examination of the nonprofit’s internal controls (which is normally included in the scope of an independent audit). Instead the review provides a limited level of assurance that the financial statements are free of misrepresentations.