Have you ever tried riding a bicycle with your eyes closed?
Of course not! You’d likely harm yourself or worse.
Running your business without routine financial statement reviews is like riding a bicycle with your eyes closed.
You may be able to hear a car honking at you, but you’ll never see it coming before it smashes into you.
An outsourced accounting department helps bring current, manage, and forecast your financials so you aren’t “flying blind” with your business.
This is why it’s imperative you get an outsourced accounting department for your financials who knows what they are doing…
Financial Statements Your Business Or Company Needs
If you’re running a business, for-profit or not-for-profit, you need these three financial statements.
The danger in not reviewing your financial statements regularly includes loss of cash flow, tax penalties, or even closing down your operation.
This is why it’s imperative you utilize an outsourced accounting department to track, manage, and review your financials for you in cycles.
These cycles can be weekly, monthly, quarterly – or whenever you like, but financial reviews need to happen in order to keep your business growing and profitable.
Here are four must-have financial statements in your business:
#1. The Income Statement
This is also known as your Profit & Loss statement. This financial report shows the overall profitability of your company. You get information on sales revenue, expenses, and more. Without this statement, you’ll have only a guess at whether or not your operation’s got margins or if it’s sinking quicker than the Titanic.
#2. The Retained Earnings Statement
This statement follows your Profit & Loss statement. Once your net profit or loss is calculated, you can then determine your retained earnings and what you’ll pay out in dividends, if any. This statement specifically shows the amount of retained earnings for your company’s growth.
#3. The Balance Sheet
Do you know your company’s financial position right now, at this moment? Your balance sheet can show your financial position at any given point in time. If you’re in the throes of a financial decision, a balance sheet will give you an “on-the-ground” look at your numbers without having to look for or wait for a profit & loss statement. Not that you should be making a financial decision on the fly, but it can help to know your numbers in the day-to-day operations and financial decisions. On this statement, you’ll see items like assets, liabilities, equity, and more.
Your cash flow statement shows your financial position on a cash basis instead of an accrual (like in your balance sheet). This statement can divide your cash flow into distinct categories like operating, investment, financing, and more. In any given time period, a cash flow statement will show a net change in cash across these categories. This helps you know exactly where your business stands right now.
If you want to get spot-on, accurate reports – weekly, monthly, quarterly, or whenever you like…
Then let me manage your reports.
Get an outsourced accounting department for your financials who knows what they are doing…
How Do I Outsource My Accounting for a Third of the Cost?
If you want an accountant in your corner to help you save money, find new money, and keep the IRS off your back, then let me manage your financial standings, reports, and forecasting for a third of the cost.
I deliver spot-on, accurate reports weekly, monthly, quarterly, or whenever you like.
I reconcile and bring books current – the first time, so you can work on growing your company instead of struggling inside of it.
I forecast your financial future so you can grow your company toward financial success. And, my in-house CPA can prepare and file your taxes.
