You may wonder why you need to prepare financial statements when you know your business is profitable. Financial statements are not only needed for your own peace of mind, they may also be required by other stakeholders such as directors, shareholders, banks, ATO, insurance companies and finance companies. Get that empowering feeling when you see the facts and figures in front of you that proves your success!
Profit and loss statements are a summary of your business’s financial transactions over the course of the year. Balance sheets provide a snapshot of your business assets and liabilities at a specific point in time.
Together, these financial statements provide a snapshot of your business’s financial health, giving insight into its performance, operations and opportunities. Theses valuable insights can in turn help you make informed decisions about its future.
The preparation process can also help mitigate costly mistakes associated with incorrect practices within the business, through detection of discrepancies when reconciling numbers.
Contact us at 0408 837 929 today to learn how we can assist with preparing your financial statements and provide ongoing business advice to help improve your business.