Owners and Executives who know what they’re doing swear by the use of financial statements.
Financial statements reflect your company’s financial performance. It shows profits, liabilities, and more. And, it is a track record of how successful (or unsuccessful) an Owner’s or Executive’s decisions have been over time.
So, if you want to grow your business and scale your company, a spot-on, accurate financial statement is the key to making informed decisions.
I’m your local, expert outsourced accounting department for a third of the cost.
With more than 15 years of experience, I deliver spot-on, accurate reports weekly, monthly, quarterly, or whenever you’d like so you know exactly where your business stands.
This is where Local Accounting Services can help you a ton with your accounts payable system and processes.
As your Outsourced Accounting Department, I’m going to share the four important uses of financial statements so you can grow your business, scale your company, and keep your books from becoming a mess.
Why Are Financial Statements Important?
Financial statements perform a variety of important functions in a business.
First, they reflect the success and health of your business. They also share important financial information that help Owners and Executives make decisions. And, they act as a “track record” for the success or failure of the company.
Here are 4 Important uses of Financial Statements in YOUR business:
#1. Bridging the Gap in Management
The past, present, and future are wrapped up in your financial statements. So, when you’re looking at a statement, you’re looking at the financial history and trajectory of your operation. This means that if there are any lapse in judgment or hiccups, you can see them at a high level on the financial statement.
Primarily, you’re able to see the gap between management and owner expectations.
#2. Availing Credit from Lenders
Most companies need to borrow funds to function at some point in time. They rely on lenders to get from now to tomorrows–or next week. This means that financial statements play a huge role in how much these companies can borrow. If you have spot-on, accurate financial statements, banks are more likely to give you a loan versus an operation how has scattered, inaccurate reports.
Get your financial statements right and you can open up a ton of upside opportunity for your business. Smart Owners do this all the time.
#3. Use for Investors
Looking for investors? Financial statements hold the secret to getting more investors for your company. The better your company’s financial position, the more likely investors are willing to risk their capital on your operation.
Keep your financial statements spot-on and accurate to create opportunities for investors.
#4. Use for Government
The government, IRS, and other bodies depend heavily on financial statements. Your statements show how your operation is functioning from a financial standpoint. How your financial statement reads helps the government and IRS determine taxes and regulatory policies.
This is why having an Outsourced Accounting Department in your corner is so beneficial. They manage your reports, as well as help you reduce tax obligation–legally.
How Do I Hire Virtual, Outsourced Bookkeeping & Local Accounting Services?
Hire me, your Local, Master Outsourced Bookkeeper & Expert Virtual Accountant, today.
I bring your books current the very first time. Bringing back months and years!
I deliver accurate, spot-on reports weekly, monthly, quarterly, or whenever you like without fail.
And, I help you forecast your financial future so you can know exactly where your business stands financially.
Don’t let behind books and inaccurate accounting get in the way of growing your business.