All sorts of reports
Serious business owners and entrepreneurs are making sure to analyze how well their business is doing, by looking at financial statements and running reports. This is an important process which is dependent upon continuity and genuine interest toward making things run smoothly.
There are a number of reports a company can run, too:
- Gauge it’s retail impact
- Discover customer reach
- Acquire prospective investors
- Find the right financial institutions
- Find the right suppliers
- Educate new employees
- Learn about competitors
- Stay up-to-date with tax laws.
The list is a good long one! If you’re new to deep business analysis, it can feel quite overwhelming. A good starting point is to make a draft of your top interests and curiosities and go from there. Having this checklist available will allow you to sort and categorize what you feel is most crucial to ascertain for the business–using the A, B, or C method. “A” being of primary importance. There are a few basics thedigitalCPA does suggest you put in with the priority A list…
Most basic reports for a business
The Balance Sheet – This will show the immediate financial health of a company, at any given time. Running the balance sheet will provide information of your assets, liabilities and equity. Think of it as taking a snap shot of what the companies capital, debt, and current wins and losses are at that moment in time.
The Profit and Loss – A financial statement like this shows a more solid view of your companies capability with net income, and is used to dictate yearly taxable income figures. It’s also a good report to show lenders and investors as to how much you have made during a given date.
Cash Flow Statement – This shows all of a businesses incoming and outgoing transactions. If you are curious just where your money goes each month, this is a report worth visiting, as it takes the mystery out of where those extra dollars went and how they played a part in building your enterprise.
For more information, visit thedigitalCPA today. We’d love to hear how your business is fairing and what we could do to help you move forward.