Brillian asks a couple of questions about how your financial statements are prepared. Here's what they mean and how to answer confidently.
Cash vs. accrual accounting
Cash basis — revenue and expenses are recorded when money actually changes hands.
Accrual basis — revenue and expenses are recorded when they're earned or incurred, regardless of when cash moves.
Not sure which you use? Ask your bookkeeper or CPA, or check your accounting software's settings. In QuickBooks, this is under Reports > Accounting Method.
Audited, reviewed, compiled, or internal only
Audited — prepared with independent CPA verification; the highest level of assurance.
Reviewed — CPA-reviewed; limited assurance.
Compiled — CPA-compiled with no assurance; management is responsible for accuracy.
Internal only — prepared internally, with no external review.
Most small businesses fall into "compiled" or "internal only" — that's completely normal and won't affect your ability to get a valuation.
Why this matters
These questions help Brillian and its appraisers understand the context behind your numbers — not to penalize less formal statements, but to interpret them appropriately. Wherever your bookkeeping stands today, Brillian is built to give small businesses an accurate valuation, not just formally-audited ones.