Financial Statement Preparation for Fuquay-Varina Businesses

Within small business accounting there are four primary financial statements used: the balance sheet, the income statement, the cash flow statement, and the statement of shareholder equity.

• The balance sheet provides a peak into a company’s assets, liabilities, and shareholder equity at a particular point in time.
• The income statement shows a company’s revenue and expenses over a period of time, typically one year.
• The cash flow statement tracks the inflows and outflows of cash within a company over a certain time period.
• The statement of shareholder equity shows the complete equity held by shareholders at a given point in time.

Yes, businesses large and small in Fuquay-Varina, NC should take the time to prepare financial statements. There is a variety of reasons for this. First, financial statements provide important information about a company’s current and past financial health which is important for potential investors, creditors, and other stakeholders. Second, financial statements are used to make sure your business is in compliance with important tax and regulatory requirements. Finally, financial statements can help owner make informed decisions about where to allocate resources.

There are two primary financial statements that small businesses should focus on to prepare for small business accounting purposes: the balance sheet and the income statement.

While a balance sheet is not a specific requirement to operate a small business successfully, it is an important financial document that businesses use to provide insights into their overall financial health. The balance sheet showcases a company’s assets, liabilities and equity at a specific point in time. For small businesses, having a balance sheet can give a look into whether the business is currently operating at a profit or loss, and whether it has the financial resources to expand or pay down debt.

The top uses of financial statements are to help a company make informed decisions about where to allocate resources. They also help to provide valuable information to potential investors so they can make informed decisions about whether or not to invest in the company. Financial statements also play a role in assessing a company’s creditworthiness.