Financial Statements

Financial statements are formal records of all financial activities within a company. It is imperative to have accurate and up to date financial statements for your business. The statements include a listing of numerous transactions which need to be recorded properly to correctly assess a business’ financial stability. These factors include, but are not limited to, a listing of assets, accounts receivable, accounts payable and account totals. There are four primary documents which collectively represent the financial condition of a business. Therefore it is important to correctly produce each statement; otherwise a mistake can follow through to the next statement. An experienced accountant can produce and maintain all your financial statements in an efficient and effective manner.

Does your company need to produce effective financial statements? Contact a skilled and experienced accountant regarding the financial statements of your company today.

The four basic financial statements which need to be updated consistently are as follows:

• Balance sheet
• Income statement
• Statement of cash flow
• Statement of retained earnings

A balance sheet holds all balances for asset accounts, liability accounts, capital stock, and retained earnings. An income statement reports all expenses, revenue as well as the capital gains and/or losses. The cash flow statement defines the reasoning behind each change in cash balance. And last but certainly not least, is the retained earnings statement which states the retained earning figures from both the beginning and end for a fiscal period. These financial statements are extremely complex and need to be assessed by a qualified and experienced accountant.

For large companies, financial statements can prove to be extensive and very complex therefore financial statement notes will need to be produced as well. These notes will further explain, in greater detail, the transactions recorded on the balance sheet, income statement, and the statement of cash flow. An accountant can handle all these matters to ensure your statements are up to date. Contact a knowledgeable accountant today for more information.

Does your company need to produce effective financial statements? Contact a skilled and experienced accountant regarding the financial statements of your company today.