Chapel Hill Financial Statement Preparation
Having a clear understanding of your business’s financial status allows you to maximize your revenue while reducing your risk. Our Certified Public Accounting professionals can help you achieve that by generating your financial statements for you. With over 200 small businesses in and around Chapel Hill relying on us for accounting and bookkeeping services, we offer the knowledge and experience necessary to help you make sense of your data and leverage it to reduce debts more quickly and increase your profits.
The Importance of Financial Statements
Your financial statements allow you to see exactly how much money is coming in to and going out of your business at any given point. Using this information allows you to:
- Spot trends in business increase and decreases
- Determine what services or goods are most beneficial to your profits versus which ones aren’t.
- Show investors and lenders your financial state to get loans and grow your business.
- Create more accurate budgets
- Keep accurate tax return records. Tax return numbers need to be substantiated
Preparing Monthly Statements
There are several monthly reports that allow you to judge your business performance at any given time, including:
- Current ratio – provides an accurate representation of how an individual or business is performing at that moment. A high current ratio value is a positive sign that a business can effectively pay back its debt.
- Debt to equity ratio – a comparison of debt or liabilities versus assets. The formula to determine this ratio calculates liabilities divided by assets minus those liabilities. A low debt to equity ratio can show a lower risk of loan default or investment by stakeholders.
- Receivables outstanding – means that a product was sold or services rendered without payment at that time. Until an account is paid in full, it is considered outstanding debt. Once the debt is settled the account no longer outstanding.
- Profit margin – A calculation that can help show growth of a business, and provides a snapshot of how a company compares with competitors. Calculate your profit margin by subtracting your debts from your assets and divide by total revenue. The larger the percentage, the greater the overall profit of the business.
When you prepare and keep accurate financial statements, you are setting up yourself up for success. In order to help you and your business achieve its highest level of success, our firm is available to answer all of the financial questions you may have.
Contact Us to Prepare Your Chapel Hill Business Financial Statements
You work hard to ensure your business is a success, and having a clear picture of your financial health allows you to make the best decisions to achieve your goals. When you partner with our CPAs to prepare and analyze your financial statements, we can help you make those decisions with confidence. Contact us today at (919) 420-0092 or fill out our contact form to get started!