Why You Need Proper Financial Statements
The financial records and information from your business are used to compile statements such as cashflow statements, balance sheets and income statements, that show different aspects of the financial health of your business.
Having accurate financial statements can help you make informed, knowledgeable decisions about your business. Financial statements provide an in-depth look at the financial health of your company. The financial statements we prepare can be used for the following:
End of year tax purposes
Whether your business is financially prepared to expand
Help you determine the financial health of your business
To seek funding from lenders and/or investors
What Are the Benefits of Financial Statements?
These statements provides insight into how much and how a business generates revenues, what the cost of doing business is, how efficiently it manages its cash, and what its assets and liabilities are. Financial statements provide all the details on how well or poorly a company manages itself. For a business owner to not take interest or prioritize of the monitoring of their business, is a sure way for that business to struggle or fail.
How Do You Read Financial Statements?
Financial statements are read in several different ways.
First, financial statements can be compared to prior periods to understand changes over time better. Financial statements are also read by comparing the results to competitors or other industry participants. By comparing financial statements to other companies, analysts can get a better sense of which companies are performing the best and which are lagging behind the rest of the industry.
Financial Statements are not included in tax preparation.
In order to complete your business taxes, a business owner would typically have in place the profit and loss to help the tax preparer prepare the business taxes. When these statements are not completed, the business owner or authorized officer of the business must complete a the self employed or business intake attest form that declares the income and expenses for the business in order to complete the business tax return.
Additional costs:
Income statements
Going through invoices, receipts, bank statements, payment processing statements, etc to get your total income and expenses (per hour charge). Will not be a speedy process.
Organizing files
correcting financial statements
For those who do not have bookkeeping software, spreadsheets are available on the website for free to help you preparer and get organized throughout the year.
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