Is Your Business Healthy? Financial Statements Can Help!
Now that your books for last year are winding down it's a good time to take a look at your core financial statements.
Financial statements can give great insights into how you did last year and where you're heading in 2016. They are also helpful in identifying key risks and opportunities for your business.
This Statement of Financial Position allows you to assess the financial health of your company as well as identify risk in areas of liquidity, financing, credit and business.
The Income (or P&L) Statement not only measures overall performance but also gives insights into performance based on sales revenue, changes in margin and changes in the areas of net income, operating income and gross profit/loss.
CASH FLOW STATEMENT
This statement can provide insight into liquidity and solvency that helps you plan better. Combined with your historic cash flow, it can also help you project fugure cash flow.
STATEMENT OF RETAINED EARNINGS
Also referred to as the Statement of Changes in Equity, this provides significant information about equity reserves and some of the options available to you to grow your business.
Accurate and timely financial statements are critical to understanding and managing your successful business. And, a good accountant can help you use your company's financial statements to make your business healthier and more efficient.