Year-end Financial Statements provide an overview of your company’s financial position, including its revenues, expenses, profits, and losses, and include information about assets, liabilities, and equity, as well as cash flows and other financial metrics
-It is crucial for a business to have a Balance Sheet which shows the company’s financial position and provides detailed investments of the company’s asset investment. It also contains the company’s debt and equity levels, thus helping investors and creditors understand the position and your company’s performance.
-It is also of great importance for your company to have an Income Statement, which contains sales, expenses, losses, and profit. Using these statements will help investors evaluate the company’s past performance and determine and determine future cash flows.
-The Cash flow Statement shows how cash is flowing in your organization, meaning that it shows the cash outflow and the cash inflow during the financial period, and it actually gives investors an idea that the company has enough funds to pay for its expenses and purchases.
-The complexities and the size of the business make it necessary for the management to have up-to-date, accurate, and detailed information about the business and its financial position. The financial position helps management understand your company’s performance in case you would want to compare to other companies in the same sector for various reasons.
-We create these financial statements for your shareholders as well, who are owners but do not take part in decision-making and day-to-day activities. However, these results are shared at your Annual General Meeting, so that they can be well informed, thereby improving relations.
-To the creditors and the lenders, financial statements are also crucial since they are very much concerned about your company’s debt position, analysing these statements will help them decide if they want to continue and determine their future course of action. Transparency is always important!
We also create financial statements for taxation purposes. The Government uses business performance in various sectors to assess the performance of the economy as well as tax auditing, hence it is really necessary for your company to have its financial statements up to date. As Trinity Tax Accountants, we’ve got you covered!