A financial statement is a collection of summary-level reports that provides information on a company’s business activities and financial performance. These reports include, at a minimum, an income statement, balance sheet and cash flow statement.
A financial statement is useful in helping lenders, investors, government entities or others:
- Assess a company’s ability to generate cash
- Examine a trend line to anticipate profitability challenges
- Determine if a company is able to pay its debts
- Review financial ratios that can be indicators of a company’s health
- Review the details of specific business transactions
Should you get help with your financial statements?
Some businesses prepare their own financial statements monthly and at the end of the fiscal year. However, there are many benefits to getting assistance from your Fort Collins business accountant, including:
- Time savings. Having an accountant produce your financial statements saves you time and effort that you can invest in other tasks.
- Accuracy. Business owners and their internal accountants get pulled in many different directions, which can increase the chances of a reporting error. When your Fort Collins business accountant is working on your financial statement, that’s their one and only job. This, and their extensive expertise in this area, helps decrease the risk of inaccuracies.
- Audit readiness. Financial statements are subject to audit by government agencies and others related to taxes, financing and other purposes. Working with an expert gives you the confidence that your financial statement is accurate and ready for review whenever it is requested.
Shaw & Associates can take the burden of preparing financial statements off your plate. Contact us today to learn more about our accounting and financial advising services.