[ScnCPA]

I’ve recently started my own accounting and tax business. I am a QuickBooks proadvisor so I use QuickBooks to do their monthly bookkeeping. I mostly work with small businesses and startups.

I get confused sometimes on the requirements for “preparing financial statements/compilations”. Technically, I do the bookkeeping and I can generate a P&L, BS and Cash flow statements from QB and send them to the client, which I consider preparing their financials. But does this mean that I should be preparing real financial statements with footnotes? If so, what additional software do I need for that.

Am I violating requirements by using QB financial statements templates? These are all small and nonpublic companies.

I just want to be sure I’m doing things correctly.

AUD 84 (April 2015)
FAR 78 (Nov 2015)
BEC 74 (Feb 2016) 76 (April 2016)
REG 69 (July 2015) 77 (June 2016)

Ethics 93 (July 2016) Waiting for License

[RE2PECT]

Congrats and good luck with your business! I'm also at a small firm and do similar work for smaller business clients. I believe if you're only sending it to the client for their own personal use and it's not being submitted to a third party, you don't need to prepare footnotes or do anything else with the financials.

If you want to start getting into other services like reviews and compilations, there is software that will help you create documents like engagement letters and accountant reports. My firm uses software from Thomson Reuters for those engagements, but I don't have much experience with it so can't give you much input on how good it is.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[jenpen]

We had a peer review last year at my old firm, where we did a lot of preparation engagements. There is wording that should be on those reports – something like, “Substantially all disclosures have been omitted and no assurance is provided on these financial statements.” There are also a few work papers you should prepare for these engagements. We got everything from Thompson Reuters PPC software online. I hope this helps!

AUD - 56 - 68 - 61 - 9/8/16
REG - 75
FAR - 7/15/16
BEC - TBD

Wiley CPAexcel and NINJA 10 Point Combo

[ayusdream]

You can only issue reports along the FS you prepare if you are a licensed CPA. Otherwise it is just bookkeeping, then you shouldn’t prepare footnotes. And you should not advertise as accounting. And the insurance you will buy, is total different price depends on your business.

If you are a license CPA, and you prepare the FS to your client, you need to have the word “no assurance provided” on ever page because 3rd party will look at it. This topic mentioned in the audit material in the audit exam preparation. And you will need to follow AICPA rule. Go to their site and they already list their requirements. If you have taken the audit exam, you should probably know how to research through their site.

[Recked]

I would recommend adding UNAUDITED – FOR INTERNAL USE ONLY to the bottom of every F/S you prepare and send to a client.
This should prevent the client from attempting to pass your work along as anything more than bookkeeping/write-up, and keep your neck out of the noose.

[Tncincy]

Congrats and much success in your business.
I agree with the others, be careful with ethics. If you are still a cpa candidate is not the same as an actual CPA. Therefore, following those non assurance guidelines are great.


@RE2PECT: I am in kinda the same boat as far as software. Is Thompson Reuters a good software to graduate to, instead of Quick books. As a matter of fact, I have a few not-for profit clients (churches) that want write-up work. I am trying to do quick books, but the information is from absolute scratch. So is there a recommendation for a better software that won't cost a million bucks or a referral site to get more information.
All expressions are welcome. P.S trying to grow the bookkeeping portion of the business until I can pass this crazy exam.
Also open for focus drug recommendations. (seriously, been here too long as a cheerleader)

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Tncincy]

@ Recked which review material did you use for reg?

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Recked]

I'd recommend QB as the best and cheapest solution for write-up, but I don't have much experience with anything else.

15 years tax experience.
Roger videos and IPQs for all 4.
If I had extra time I dipped into the Gleim TB, only for FAR and BEC.
I also had the Gleim books, in addition to the Roger books. Gleim books have an index and were handy for quick lookup or if I needed another resource to read something worded slightly differently.

Also used Gleim for EA in 2013/2014. EA is a different beast, but the hours I spent on that definitely carried over into REG.

Email?

[Author]

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