What Is a Notice to Reader (NTR)? And When Does Your Bank Need One?
If a bank, lender or investor has asked for “financial statements,” they usually mean one of three things. Here’s the difference — and what most small businesses actually need.
The three levels
A Compilation (Notice to Reader / NTR) is financial statements a CPA prepares from your information, with no assurance — the most common and affordable option. A Review engagement adds limited assurance and more scrutiny. An Audit is the highest (and most expensive) level of assurance. Most small businesses need an NTR.
When you’ll need one
Applying for a business loan or line of credit, bringing in an investor, or meeting a shareholder agreement are the usual triggers. The lender tells you which level they require — often an NTR, sometimes a Review for larger financing.
What’s involved
We take your year-end numbers, prepare professional statements that meet CPA Canada standards (CSRS 4200), and deliver something your bank will accept. Clean bookkeeping makes it fast and inexpensive.
FAQ
What’s the difference between an NTR, a review and an audit? Increasing levels of assurance and cost — NTR (none), Review (limited), Audit (highest). Most SMBs need an NTR.
When do I need financial statements? Usually for a bank loan, line of credit, investor, or shareholder agreement.
How much does an NTR cost? It varies with complexity — book a consult for a quote. Clean books keep it lower.
Who can prepare an NTR? A CPA — that’s what makes it acceptable to lenders.
