Financial Statement Preparation for Small Businesses in Raleigh

C. E. Thorn, CPA, PLLC can prepare financial statements for you and your small business.

More importantly, we can help you use these financial statements, as well as other reports to better manage your business and increase your profitability.

Good financial records are necessary for several reasons:

• Daily operating decisions are based on financial reports
• Small business loans require reports of past performance
• Tax return numbers need proper substantiation

Monthly Financial Report Preparation

For year-to-date comparisons and quick management decisions, financial reports must be done monthly. You can compare the sales, gross profit, and net profit at, say, the end of May, with prior years to get a good idea of how the current year will finish. You can compare the total accounts receivable or payables with prior years to spot problems and take corrective action.

Here are some common business ratios you should monitor on a month-to-month and a year-to-year basis:

• Current ratio – Current assets divided by current liabilities will measure your ability to pay your current debts
• Debt to equity ratio – Total liabilities divided by net worth will provide you with a year-to-year comparison of your ownership in the company
• Receivables outstanding – Receivables divided by average day’s sales will give you the number of days’ sales on the books
• Profit margin – Gross profit divided by net sales will allow you to compare your business operations to other companies in your industry, as well as monitor your own operations over time

Understanding financial statements can increase business profits. If you would like to learn more about using financial statements to make sound business decisions, we will be happy to assist you. No one was born understanding financial information, but it is easier to learn than you might think.

Please ask as many questions as you like; we will help you until you are comfortable with business numbers and can use yours to increase your profitability.

Get the Support You Deserve

The success of your business is important. So, why should you spend more time worrying over financial matters than focusing on developing your business? By selecting a Raleigh small business accountant to handle your financial matters, you can reduce the time you spend on the business’s finances.

Remember it only takes a phone call to (919) 420-0092 or completion of our online contact form to receive the full support of a Raleigh Certified Public Accountant.