A company’s financial statement is important; let us assist
A company’s financial statement is constructed to give an indication of a company’s finances – both its activity and performance. The statement illustrates where your money came from, where money went, and what your current accounts look like. Companies are required to submit financial statements annually as these statements allow government agencies to ensure that companies are staying compliant with tax and financing regulations.
There are four main types of financial statements; these include:
- Balance sheets Balance sheets provide in-depth information about your company’s current financial status. It will provide information on your company’s assets, liabilities and shareholders’ equity. The balance sheet gives a clear indication of a company’s financial position at the end of a reporting period.
- Income statements Income statements show how much revenue a company generated within a specific timeframe. The statement also indicates costs and expenses associated with every income. A company’s income statement will therefore show its gross income, and then its income after tax and other deductions, to determine whether you made a profit or not.
- Cash flow statements Cash flow statements are important because a company should always have sufficient cash on hand to pay its expenses. These statements will illustrate your company’s incoming and outgoing cash transactions.
- Statements showing shareholders’ equity
These four statements are all related and together they form your business’ financial statement. When seeking investment, a company’s financial statement is often the first thing that investors will turn to as it gives a clear indication of your business’ financial history, performance and future growth, which is why it is so important that your statement is put together professionally – and contains all the relevant information.
Get in Touch