What to do when a third party requests your business financial statements

January 10, 2024

As a business owner, you may find that third parties such as banks or mortgage brokers request copies of your tax forms and financial statements. When this happens, it’s important to know what to do to protect your business and ensure you are meeting your obligations as a client.

Here are some things to keep in mind:

  1. When you hire a CPA to prepare your tax return, they are engaged to prepare the tax return and forms for the Canada Revenue Agency (CRA), most commonly known as a T2 Return. The T2 return already includes financial statements, known as GIFI forms.
  2. The GIFI is intended to recap a corporation’s financial statements for the Canada Revenue Agency (CRA) in a uniform way.
  3. If a lender or other third party requests a copy of your tax forms and financial statements, you may provide your GIFI directly to them or a copy of your entire T2 Return.
  4. New Canadian standards require that financial information should only be communicated through a compilation engagement report, which is not the same as preparing a corporation income tax return.
  5. If you provide a copy of your tax forms to a third party, it keeps your CPA out of the relationship, and does not affect the scope of work your CPA has performed.
  6. As a best practice, when a lender or other third party requests a copy of your financial statements, you should send it to them directly so that the role of your CPA is clear.

Always remember, your CPA works for you, not for the bank or third-party.

By keeping these guidelines in mind, you can confidently provide the information third parties request while still protecting your business and ensuring that your CPA has performed the necessary work. Remember, providing financial information to third parties is common, but it’s important to know your rights and obligations as a client.

The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without a specific consultation. Lucas CPA Professional Corporation will not be held liable for any problems that arise from the usage of the information provided on this page.

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