What to Expect During Your First Financial Statement Review
Plan your expenses and deductions strategically each year
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If you’ve never gone through a financial statement review before, it can feel intimidating. The word review might bring to mind endless document requests, confusing jargon, or surprise bills. But with the right CPA firm, the process doesn’t have to be stressful.
A review is designed to give your stakeholders — like banks, investors, or business partners — confidence in your financial statements, while giving you peace of mind that your numbers make sense. Here’s a step-by-step look at what you can expect during your first financial statement review.
Step 1: Kickoff Conversation
Every engagement starts with a conversation. Your CPA will ask about:
- Why you need a review (bank financing, investor requirements, internal use, etc.).
- The structure of your business and industry-specific factors.
- Your goals and concerns about the process.
This is where we build context. At Credex Advisors, we want to understand your business, not just your numbers.
Step 2: Information Gathering
Once the engagement begins, your CPA will request access to your financial information. Traditionally, this meant long lists and paper files. But in a modern review, this step is streamlined.
- Secure uploads through online portals (no sending sensitive data over email).
- Direct system connections to your accounting software or bank, where possible.
- Targeted requests for additional information, instead of broad checklists.
The goal is to collect what’s needed — no more, no less — while making the process efficient for your team.
Step 3: Review Procedures
Here’s where the CPA’s expertise comes in. During a review, the CPA doesn’t test every transaction like in an audit, but they do perform two key types of procedures:
- Analytical procedures: Comparing numbers across periods, looking for unusual trends, and asking why things changed. For example, if revenue jumped 40% year over year but expenses stayed flat, they’ll ask how that happened.
- Inquiries of management: Asking you and your team questions to understand the numbers better. These aren’t “gotcha” questions — they’re meant to clarify whether the financials are reasonable.
The result is limited assurance that your financial statements don’t contain material misstatements.
Step 4: Reporting
At the end of the review, your CPA issues a formal report that accompanies your financial statements. This report tells readers — like banks or investors — that based on the review procedures, nothing came to the CPA’s attention suggesting the statements are misstated.
For many stakeholders, that level of assurance is exactly what they’re looking for.
Step 5: Walkthrough and Next Steps
One of the most important (and often overlooked) parts of the process is the walkthrough. A good CPA won’t just email you a report and move on. They’ll:
- Explain what the report means in plain English.
- Highlight any issues or adjustments identified during the review.
- Answer your questions so you feel confident moving forward.
At Credex Advisors, this is where we make sure the review is not just a compliance exercise, but a learning opportunity for you as the business owner.
Common Myths About Reviews
“A review is the same as an audit.”
Not true. An audit provides a higher level of assurance, with deeper testing. A review is more limited — and more affordable — but still builds credibility.
“Reviews are only for big companies.”
Reviews are often most valuable for small and medium-sized businesses applying for loans or attracting investors.
“Reviews take forever.”
With modern tools and an experienced CPA, reviews can be completed in weeks, not months.
“It’s going to be way too expensive.”
While audits can be cost-prohibitive, reviews are much more accessible. At Credex Advisors, we provide transparent, competitive pricing upfront.
How to Prepare for Your First Review
A little preparation can go a long way in making the process smooth:
- Keep your accounting records up to date.
- Reconcile bank accounts regularly.
- Organize supporting documents (contracts, invoices, etc.).
- Be ready to answer questions about big changes year over year.
Your CPA isn’t looking for perfection — they’re looking for reasonableness. Having clean records just makes everything faster and easier.
The Bottom Line
Your first financial statement review doesn’t have to be stressful. With the right CPA firm, it’s a straightforward process that gives you and your stakeholders confidence in your financials.
At Credex Advisors, we combine 40+ years of public accounting experience with a modern, tech-enabled approach designed for private companies. That means fewer headaches, faster turnaround, and results you can actually use.
If you’re preparing for your first review, let’s make it a positive experience. Talk to Credex Advisors today.
