Online CPA compilation services

Compilation Engagement Services for Canadian Businesses

CPA Firm Online provides compilation engagement services for eligible businesses requiring compiled financial information for financing, external-use or year-end reporting purposes, subject to applicable professional and jurisdictional requirements.

CPA professional service Remote workflow Written scope and fees Compiled financial information
Understanding the engagement

What is a compilation engagement?

A compilation service involves assisting management in preparing compiled financial information based on information provided by management and issuing the applicable compilation engagement report.

01

Financial information

Accounting information is organized and compiled into financial information based on the records and information provided for the engagement.

02

Compilation report

The completed engagement includes the applicable Compilation Engagement Report when the requirements for such an engagement are met.

03

No assurance

A compilation service does not provide audit or review assurance on the compiled financial information.

Important distinction

Compilation is not an audit or review engagement

A compilation service provides no assurance.

It is different from an audit or review engagement, which involve different procedures and levels of assurance.

If a bank, lender, investor or other third party has requested financial statements, confirm exactly which type of engagement they require before proceeding.

Common uses

When might a compilation service be requested?

The required engagement depends on the intended use of the financial information and the requirements of external users.

Business financing where a lender accepts compiled financial information.
Commercial financing or credit applications where compilation is sufficient.
Shareholders or owners requiring organized year-end financial information.
External organizations requesting compiled financial information.
Government or funding programs where compilation information is accepted.
Year-end reporting when a compilation service is appropriate for the intended use.
Our process

Our Compilation Process in 8 Easy Steps

Each file is different, but a typical compilation service follows a structured process from initial assessment through completion.

Initial assessment

We review the entity, reporting period, accounting records, intended use and requested financial information.

Engagement scope

The required work, responsibilities, expected deliverables and professional fees are communicated before work begins.

Records collection

Trial balance, bookkeeping records and supporting documents required for the engagement are collected.

Accounting review

Accounting information is reviewed to identify items requiring clarification or year-end adjustments.

Adjustments

Applicable year-end entries and accounting adjustments are prepared based on the agreed scope and information available.

Financial information

Compiled financial information is prepared using the accounting basis appropriate to the engagement.

Management review

Management reviews the information and addresses outstanding questions before finalization.

Completion

Final compiled financial information and the applicable compilation engagement report are delivered.

Preparing your file

Information commonly required

Required documentation varies by entity and engagement. Common records may include:

Year-end trial balance
General ledger
Bank statements
Credit card statements
Accounts receivable information
Accounts payable information
Loan and financing statements
Fixed asset information
Shareholder loan information
Payroll information where applicable
GST/HST and QST information
Prior-year financial information

For guidance on organizing your supporting documents, see the Canada Revenue Agency’s record-keeping guidance.

Choosing the right service

Bookkeeping vs. compilation vs. corporate tax

These services are related but serve different purposes.

Service Main purpose Typical output
Bookkeeping Maintain and organize accounting records throughout the year. Updated accounting records, reconciliations and bookkeeping reports.
Compilation Services Compile financial information for management or eligible external use. Compiled financial information and applicable Compilation Engagement Report.
Corporate Tax Return Determine and report corporate taxable income and tax information. T2 corporate income tax return and applicable provincial filings.
Frequently asked questions

Compilation Engagement FAQs

Does a compilation service provide assurance?
No. A compilation service does not provide assurance on the compiled financial information. Audit and review engagements involve different procedures and assurance levels.
Can compiled financial information be used for financing?
It may be accepted by some lenders or other external users, depending on their requirements. Before beginning the engagement, confirm with the intended user whether a compilation service is sufficient or whether another level of assurance is required.
Do I need my bookkeeping completed first?
Reliable accounting records are required to prepare compiled financial information. If bookkeeping is incomplete, additional bookkeeping or clean-up work may be required before the compilation service can be completed.
Can you prepare the T2 corporate tax return at the same time?
Where appropriate, corporate tax preparation can be coordinated with the year-end accounting and compilation service. The exact scope is confirmed before work begins.
Can the compilation service be completed online?
The document exchange, accounting work and routine communications can generally be handled remotely, subject to applicable engagement, identity-verification, professional and jurisdictional requirements.
How much does a compilation service cost?
Fees depend on the quality of the bookkeeping records, complexity of the entity, required accounting adjustments, intended use of the financial information and overall scope. A written proposal is provided before the engagement begins.

Need compiled financial statements?

Tell us about your business, year-end, accounting records and intended use of the financial information. We can review the requirements and provide a written proposal based on the scope of the engagement.

Request a Quote

The information on this page is general in nature and does not constitute accounting, tax, legal or assurance advice. The appropriate engagement depends on the intended users, their requirements and the circumstances of the entity. Services are subject to applicable professional and jurisdictional requirements.