PREPARATION OF FINANCIAL STATEMENTS
Preparation of your financial statements is one of the last steps in the accounting cycle, using information from the previous statements to develop the current financial statement. Additionally, based on your needs, we can provide a financial statement analysis and file quarterly and year-end statements.
Prepare Income Statement
The income statement calculates the net profit or loss, which are determined by sales revenue, expenses, and general ledger records.
Prepare Statement of Retained Earnings
The statement of retained earnings reflects the distribution of profit between retained earnings and dividends.
Prepare Balance Sheet
The balance sheet illustrates the company’s financial position – it’s a snapshot of the last day of the accounting cycle.
Prepare Cash Flow Statement
From a cash basis, the statement of cash flow is a compilation and comparison of information from the three main financial reports: income, retained earnings, and balance sheet.
Financial Statement Analysis
Business owners may not need all the details, but they definitely need to understand the BIG PICTURE of their current financial and cash positions. These insights are crucial when making business operation decisions.