Can a controller prepare financial statements for my bank?
Yes, and this is actually one of the core functions of a controller. Preparing accurate financial statements for bank reporting, loan covenant compliance, and credit line renewals is standard controller work. Most banks accept internally-prepared statements for routine purposes without requiring outside CPA involvement.
The distinction that matters is between internally-prepared statements and CPA-attested statements. Your controller prepares internal financial statements based on your books. These show your balance sheet, income statement, and cash flow in formats the bank can use to evaluate your financial position. For most small to mid-sized businesses with existing credit relationships, this is exactly what the bank needs.
Banks typically request CPA-attested statements in three situations: large loan originations, certain SBA loans, and covenant requirements written into your loan agreement. Attested statements come in three levels. Compiled statements are organized by a CPA but not verified. Reviewed statements include limited analytical procedures. Audited statements involve full verification of balances and transactions. Each level costs more and provides more assurance to the lender.
Check your loan documents to understand what’s actually required. Many business owners assume they need audited financials when their agreement only calls for internally-prepared statements or compilations. If your agreement does require reviewed or audited statements, your controller prepares the underlying financials and supporting schedules, then works with the outside CPA to complete the engagement efficiently.
The quality of your controller-prepared statements matters significantly. Banks want statements that tie out cleanly, include comparative periods, and present information in standard formats. A controller who maintains proper accruals, reconciles all accounts monthly, and produces clean financials makes the bank reporting process straightforward. Messy books that require extensive cleanup before submission create delays and raise questions about your financial management.
Your relationship with the bank also factors in. Lenders who receive consistent, accurate financials month after month develop confidence in your reporting. When you need to expand your credit line or refinance, that history of reliable information works in your favor.
If you’re unsure what your bank requires, ask your banker directly. They can tell you exactly what format and level of assurance they need. For premium business accounting in Boca Raton and throughout South Florida, having controller-level oversight means your financials are always ready when the bank calls.
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