Part of doing business is knowing what the numbers of your financials are. Your financial statements are going to provide you with all the information you need to have a clear picture of your company’s financial health. That way, you will have confidence in making investments and other decisions to help grow your company. Without your financial statements, you are walking in the dark. Mark Dicus & Company is here to talk about why financial statements are so important and what documents make up your financial statements.
Questions Financial Statements Answer
There is no better way to monitor the finances of your business than with financial statements. If there are areas of improvement, owners will be able to more clearly see them. The formal documents that make up your business’s financial statements can answer several questions for you.
– What are my margins and profitability?
– Are there any financial responsibilities that I am unable to meet?
– Is my business stable?
– Am I making the most of my return on investments?
Different Documents Making Up Your Financial Statements
There are several documents that make up your financial statements.
– Balance Sheet: This important document is going to give owners a snapshot of their company’s liability’s, assets and equity. It shows business owners and shareholders the financial position of the company.
– Income Statement: This is often called the profit and loss statement. It is vital for the business to have since it shows the revenue and expenses over a specific period of time. It shows where the money is coming and going. Along with this information is the calculation of net profit or loss for that same period of time.
– Cash Flow Statement: The money that moves in and out of the business is tracked using a cash flow statement. The cash flow is usually organized into different categories including operating activities, investing activities, and financial activities. It is a great for showing the business’s operation and growth.
How to Prepare Financial Statements
While it might be tempting to take on preparing your financial statements on your own, especially for small businesses, it can be a big undertaking. This is especially true if you aren’t familiar with financial statements and how they work. As a small business, you are more than likely looking for ways to save money, but you might want to be leery of taking this portion of business ownership on by yourself.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you’re looking for someone to help you prepare your financial statements, you can turn to Mark Dicus & Company for all your bookkeeping needs. We will help you have a clear picture of where your business stands so that you can properly forecast for the future. It is our goal to help you grow your business and find the success you’re working so hard for. Call us today!