Tax Basis

Tax basis financial statements can be issued by CPAs. And it makes plenty of sense to do so. After all, once the tax return is done, you have the necessary information for the creation of a balance sheet and income statement.

CPAs can issue tax basis financial statements using AR-C 70, Preparation of Financial Statements, or AR-C 80, Compilations. Either option provides you with a quick way to issue financial statements—usually without disclosures—for your clients.