Issuing Unaudited Financial Statements as a NonCPA Accountnt

Hello everyone,

I am a non CPA, tax accountant/bookkeeper how do I go about issuing non audited financials to my clients? Is there a specific disclosure or letter template that needs to be attached to these financials when provided to the client? More background, I've done individual tax prep on the side for some time but just recently secured a bookkeeping client. They obviously want to see monthly financials as part of the service. I used to work for a CPA firm and there was a letter issued along with the financials there but everything was reviewed by the CPA partner,. I however, am not a CPA, I believe I am still able to provide my client unaudited financials for management use only, however what disclosure (if any) should be attached? Thanks in advance!

CPAs must issue financials as Prepared, Compiled, Reviewed, or Audited. All have formalities. Prepared, Compiled, and Reviewed are covered under SSARS 21-25, AR-C70 (prepared), AR-C80 (compilation), and AR-C90 (review).

Given you are not a CPA, only "prepared financials" may be relevant. I "feel" like non-CPAs do not need to worry about SSARS 21 AR-C70, but could be wrong. It is how I live my life with clients given I refuse to do anything higher than prepared financials and hold a CPA license. The best resource I've come across is a MasterCPE course covering SSARS 21-25.

I include, in my engagement letter, that any financial statements not audited, are for management use only, and should not be distributed to third parties. I also have a watermark "For Management Use Only" on the statements.

As long as you don't over-represent who you are or what you have done, I think you don't have to do anything special.

Always good to watermark or title ***unaudited financial statements*** ***management use only*** to avoid confusion with anyone looking at the financial statements.

If you Google Professional Bookkeeper Association, there are some associations that might give you guidance. I found this one kind of humorous: American Institute of Professional Bookkeepers.

It can also depend on your state laws.

In NY a non-CPA has to use very specific language when issuing financials.

I do not perform audit, review, or compilation, and will only do preparation and everything is marked UNAUDITED: FOR INTERNAL USE ONLY at the bottom of every page.

Look into your state CPA laws to see if they provide you with any guidance for a non-CPA preparing financials.

In Quickbooks, you can add a footer that states "Unaudited Statements - For Management Use Only" and it will print on each page of the statements. I've always included that statement when I give them to a client, or anyone if I have the proper authorization.