As a small business owner, it is vital that you are keeping track of your finances with bookkeeping. This involves several financial statements that can help you keep things straight. There are some financial statements that are more important than others as they have vital information that can help you make important decisions for your business. Mark Dicus & Company is here to talk about the most important financial statements that you need to stay on top of for your business.
These Financial Statements Are the Most Important
When it comes to your finances, business owners will need to stay on top of bookkeeping. This is a big job, and it is often something that owners decide to hire out. Working with an accountant is the best way to ensure your bookkeeping is where it needs to be so you can properly forecast for your company. Here are the most important financial statements that you need to have accurate and up to date:
– Income Statement: The income statement for your business is especially important because it shows your profits and losses. It shows how much money is coming into your business as well as what is going out. If you are spending more than you’re making, this statement will show that and help you right the course. You can see changes to your finances clearly with this statement which is another reason why it is so important.
– Cash Flow Statement: What makes the cash flow statement so important is the fact that you can see where the money is going in the context of business operations. For small businesses, there are two categories that can be found on the cash flow statement, cash outflows and cash inflows. You need this financial statement so that you know what the cash flow looks like so that you know if you are spending more money than you’re generating.
– Balance Sheet: Sometimes, the balance sheet doesn’t get the attention that it deserves. This is another crucial piece of information for your business. This is going to be a document that clearly outlines a company’s liabilities, assets, shareholder equity and owner equity. This could include things like inventory, property, cash and more. On one side of the balance sheet, you will have the assets of the company. On the other side, you will have the equity and liabilities. Liabilities will then be subtracted from the assets to provide you with a snapshot of the company’s financial position in that specific moment in time.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you are a business owner, you can turn to Mark Dicus & Company to handle all of your bookkeeping, tax planning and other accounting needs. We will help your business grow and thrive as we help you with financial forecasting and more. It is our goal to see you succeed. Call us today!