A plain-English walkthrough for business owners, nonprofit board members and executive directors, and HOA boards. Tap any line on the sample statements to see what it means and what to watch for.
The statements change names and focus depending on the organization.
The key lines, ratios and red flags for all three statements on one printable page. Keep it next to your next board packet.
Enter a few numbers from your own statements. Nothing is sent anywhere; the math runs in your browser.
Rules of thumb only. Healthy ranges vary by industry, season and organization size.
The report on the first page of your statements tells you how much a CPA checked them.
| Compilation | Review | Audit | |
|---|---|---|---|
| What the CPA does | Puts your numbers into proper financial statement form | Analytics and inquiry of management | Tests transactions, confirms balances, evaluates controls |
| Assurance | None | Limited ("not aware of" material changes needed) | Reasonable (an opinion that statements are fairly presented) |
| Who usually needs it | Small businesses, small HOAs, internal use | Mid-size nonprofits and HOAs, some lenders | Larger nonprofits, federal awards, larger HOAs, investors and banks |
| Relative cost | $ | $$ | $$$ |
You don't need to be an accountant to ask good questions.
Download the Financial Statements Cheat Sheet (PDF).
Greywood CPA prepares audits, reviews, compilations and monthly bookkeeping for businesses, nonprofits and associations, with fixed, transparent pricing.
Talk to a CPAThis guide is general information and not accounting, tax or legal advice. Sample figures are illustrative. Talk to your CPA about your organization's statements.