Most small businesses keep records for use when filing taxes only. However, understanding your business’s financial position is vital to making crucial business decisions. These decisions can include such moves as growth and expansion. Hence, the need to keep accounting records. The records help to generate critical reports essential to every business. In addition, it’d …
Whether small or large corporations, every business entity prepares financial statements to convey the business information and activities undergone throughout a financial period. The financial statements of a company provide information about the financial performance and health of the entity. The most common financial statements are income statements, balance sheets, statements of cash flow, and …
What Is The Difference Between Audited And Unaudited Profit and Loss Statements? Read More »
Financial statements are crucial in reporting an entity’s finances. Usually, these include the two reports known as the balance sheet and income statement. Some entities may also prepare other reports. These may consist of the cash flow statement and statement of changes in equity. Each financial statement serves a purpose in informing the entity’s stakeholders. …
How Do Donations Report Income Statement And Balance Sheet? Read More »
The financial statements are reports of a company’s finances over a period. Usually, companies prepare these at every financial period end. This period may differ between companies. Some companies report their progress quarterly, while others may do it annually. Either way, companies can use financial statements to present stakeholders with financial information. This information summarizes …
Why Should the Income Statement be Prepared First Before Other Statements? Read More »
When individuals create a business venture, they introduce capital into it. This capital helps them grow and fund their operations. The business may either make a profit or a loss. Usually, once it goes through several accounting periods, it will accumulate some earnings. Some businesses use these earnings to invest in new operations. Others, however, …
Is Owner Withdrawal a Debit or Credit? (Accounting for Owner Withdrawal) Read More »
Top Five Accounting Books: IFRS and US GAAP Today Financial Statements are prepared based on two world largest accounting standards: IFRS and US GAAP. Some countries require the companies that operate in their jurisdiction to use their local GAAP as the framework to prepare the Financial Statements. Yet, most of the countries have adopted IFRS …
Top Five Accounting Books for GAAP and IFRS (2023) Read More »
Overview: Financial statements report the entity’s financial transactions, position, and events, for a specific period of time and they are prepared and used for many different purposes including full filing the requirement of regulators, tax authorities, shareholders, board of directors, management of the entities and many others purposes. In general, there are five types of …
3 Main Purposes of Financial Statements (Explained) Read More »
