Notice to Reader (NTR) is a financial statement that can help you in many situations for your business. These include finding new investors, reporting to shareholders, or trying to obtain a loan from the bank. Because of this, it is crucial to understand an NTR and when you might need it in Canada.
So, if you wish to learn more about Notice to Reader financial statements, you are in the right place. Here is what you need to know.
Notice To Reader Financial Statements Explained
The Notice to Reader financial statement goes by many names. These include a Compilation Report, Compilation Engagement, and more. That is because accountants prepare these financial statements for the management of any company.
The primary aim of these financial statements is to ensure trust among investors, shareholders, directors, and more. Keep in mind that the information under this statement does not undergo any review or audit. The idea is to keep the readers on notice.
When Does A Business In Canada Need Notice To Reader Financial Statements
There are many instances where a business in Canada would need a Notice to Reader financial statements. These include:
- When investors want a review of the finances of the business
- When banks need assurance that the company is creditworthy
- For the use of management to assess the financial standing of the business for better decision making
- Prospective buyers for small businesses when they want to do their due diligence
All of these are instances where the business would require credibility or the management would want to see the financial footing of a business. That is when you can prepare these statements to see the full picture of your business.
Who Can Prepare The Financial Statements?
If you are planning to prepare this financial statement in Canada, you must know if you are qualified enough to prepare it or not. Keep in mind that the internal business owner or bookkeeper can’t prepare the statement. That is because you need to hire an external accountant that is qualified to prepare these statements.
Of course, the right accounting firm in Canada will have to comply with all the ethical and professional standards. Besides that, they will also have to follow all the accounting principles to ensure the perfect Notice to Reader financial statement. This is why you must hire a professional accountant for this service.
That was everything at a high level you needed to know about when a business in Canada needs a Notice to Reader financial statements. If you are in any of the aforementioned situations, you must hire a qualified accountant to ensure the accuracy of the statement. On the other hand, if your preference is to obtain a higher level of assurance on the financial statement, you can opt for a review engagement.
Even such a statement can only be prepared by a professional accountant. So, be sure to go through our services and get in touch with us for more information regarding our professional accountant services.