Financial Statements: Things You Need to Know
Business owners often overlook Acra financial statements, but they can be a powerful tool for making informed decisions about your company. In this blog post, we will explain things you need to know about financial statements.
Things you need to know about financial statements:
– Financial statements are an essential factor when it comes to valuation.
– Financial statements should always be prepared by a certified public accountant (CPA).
– You can get financial statements from your banker or other third parties, but you must compare them with those in your books and records.
– The balance sheet shows what assets you have, what liabilities you owe to the company, and what your shares are worth.
– The income statement shows how much money was made or lost during a specific period and revenue from services/products sold, cost of selling those products/services, overhead expenses, etc.
– For financial statements to be accurate, they must include all transactions made during a specific period.
Financial statements should be prepared monthly, quarterly, and annual to show trends over time.
In conclusion, financial statements present information about a company’s assets, liabilities, and equity and show how profitable or unprofitable it is.