Accavallo & Company, LLC

Solid Financial Reporting: A Guide to Debt and Equity Financing

In the dynamic landscape of business operations, securing financing for growth and sustainability is paramount. Whether seeking debt or equity financing, a critical component of the decision-making process for lenders and investors is the quality of a company’s financial reporting. At Accavallo & Company, we recognize the pivotal role that solid financial reporting plays in attracting the necessary capital for businesses to thrive. In this article, we delve into the importance of financial reporting and the levels of assurance available to meet stakeholders’ needs.

The Importance of Financial Reporting

Financial statements serve as a window into a company’s financial health and performance. They provide essential information such as the value of assets and liabilities, profitability, and cash flow activities. For lenders and investors, access to timely and reliable financial reports is essential for making informed decisions regarding the allocation of capital.

Levels of Assurance

Under U.S. Generally Accepted Accounting Principles (GAAP), CPAs offer three levels of historical financial statements:

  1. Compiled Statements: These offer no assurance regarding the accuracy or compliance of the financial statements with GAAP. They are typically prepared internally by the company.
  2. Reviewed Statements: Providing limited assurance, these statements undergo a review process by an external accountant to identify and correct any obvious errors or misstatements.
  3. Audited Statements: Considered the “gold standard,” audited statements offer reasonable assurance that the financial statements are free from material misstatement and comply with GAAP. Audits involve a comprehensive examination by an independent auditor.

The choice of the level of assurance depends on various factors, including the needs of stakeholders, regulatory requirements, and the risk tolerance of the business. While compiled statements may suffice for some situations, others may require the higher level of assurance provided by reviewed or audited statements.

Tailoring Reporting to Stakeholder Needs

In addition to the type of statements, the frequency of reporting may also vary based on stakeholder preferences. Interim statements, summarizing financial performance for periods shorter than a full fiscal year, may be requested to provide more frequent updates on the company’s financial health.

Choosing the Right Approach

Selecting the appropriate level of assurance and frequency of reporting is essential for meeting the specific needs of a business and its stakeholders. It requires a collaborative effort between the company’s accounting department and its CPA firm to strike a balance between cost-effectiveness and reliability.


Solid financial reporting is not only a regulatory requirement but also a powerful tool for attracting debt and equity financing. By providing transparent and reliable financial information, businesses can instill confidence in lenders and investors, facilitating access to capital for growth and expansion. At Accavallo & Company, we are committed to assisting businesses in enhancing their financial reporting practices to unlock new opportunities for success. Contact us today to discuss how we can tailor our services to meet your company’s unique needs and objectives.

If you need further information or assistance with financial reporting, please don’t hesitate to contact us at Accavallo & Company.  You can reach us at (203) 925-9600 or email us at [email protected].

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Sherri Fisher is a Tax Manager at Accavallo & Company, LLC.  Sherri has longstanding expertise in Trust and Estate Taxation, Eldercare, and Estate planning. Sherri appreciates the relationships she has built with estate planning attorneys and advisors, to provide a team approach to assisting her clients. Sherri also has seasoned experience in business and individual taxation and is partial to assisting start-ups in developing overall accounting and operating plans.

Prior to joining Accavallo & Company, LLC, Sherri was a manager in a large firm, servicing high net worth trust clients, business, and personal clients. She was also a Partner in a large bookkeeping firm, which specialized in cloud accounting systems for regional and national companies. Sherri led a team in assisting clients to organize their accounting systems.  She is a graduate of Florida Atlantic University with a B.S. degree in Accounting.    

Sherri’s experience includes working with companies and organizations in a variety of industries including:

  • Investment Trusts

  • DAPT and Family Investment Partnerships

  • Estate and Probate Administration

  • E-Commerce

  • Manufacturing

  • Construction

  • Real Estate Investment

  • Marketing and Service-based industries

In addition to her professional accomplishments, Sherri is an Intuit Advanced Pro Advisor, Intuit Future Firm Advisory Board member, member of the Valley WIN Network, and proudly served as past Connecticut Public School liaison for the Yale Tommy Fund for Childhood Cancer. Sherri enjoys time with her family, Cleveland sports, thrifting and gardening.