Even those business owners who have proven to be successful have a need from time to time to acquire insight and a fresh perspective on how to run a successful business. With that said, the dedicated team of professionals here at Tax Alternatives wants to share with all our valued clients some insight and important facts about your business financial reports.
INCOME STATEMENTS
Your business income statements reflect all the expenses and revenues you have incurred in any one specific time frame. Your company history is often assessed, whether by investors, customers or lenders, by your income statements and your company’s overall financial health and well-being. Your income statements are also a significant piece of the obligations you have to both federal and state reporting. The net income of your company will not only determine the amount of taxable income each year, but will also be a primary tool used by many stakeholders or possible business affiliates in determining whether or not your company is a good risk.
BALANCE SHEETS
Your balance sheets will reflect the current net worth of your business by outlining your assets in one regard, and your liabilities and equity in another regard. One aspect showcases the value of all your assets while the other aspect reflects how the actual value was funded. The end result should be, just as the document name suggests, balanced.
CASH FLOW STATEMENTS
A cash flow statement shows how you spend your monies and earn your income over a set period of time. It is primarily a report that outlines the past and is a powerful tool used in all strategic decision making. It reflects how your business actually operates, how you generate your cash flow, and outlines how you process financing inflows and outflows. The patterns and trends that are revealed are a reflection of how you run your business. Investors tend to give a good deal of focus to cash flow statements when determining whether or not your business is able to continue generating needed revenues to stay profitable. If you find yourself faced with cash flow statement issues, then chances are the financial future of your business is quite uncertain.
THE SIGNIFICANCE OF YOUR FINANCIAL REPORTS
Your financial reports, including income statements, balance sheets and cash flow statements are very important business accounting tools that can help to analyze the past performance of your business, your current position, and the future outlook of your business. These reports reveal all the necessary truths about your business – where it has been, where it is now, and where it will more than likely end up. If your financial reports are inaccurate, incomplete, outdated, or not reliable, they can surely cause grave damage to the operation and success of your business. Bad financial information of any kind, not just your reports, can cause a great many problems for your business, including misleading people both outside and inside the company. Without the presence of accurate financial reports you are unable to prepare or file reliable tax returns for your business annually or meet with specific legal obligations you may have.
If you are unsure about the accuracy of your company’s financial reports, including your business balance sheets, income statements and cash flow statements, as well as any other reports, you may produce, the highly skilled and experienced team of specialists here at Tax Alternatives can help. We will not only create and organize your reports, but will ensure their accuracy and take steps to help you grow your business by way of effective business reporting.
For more information about our company, our services and our team of specialists, give a shout out to one of our team members here at Tax Alternatives today. We look forward to serving you and to providing you with all the assistance you need to enjoy accurate and efficient financial reports all year long. We would like to send along continued wishes to all our valued clients for a beautiful Christmas season!
