Financial reporting is a critical practice for the growth of your business. This is why you need to ensure that the reports are accurate, complete, and timely. As a business owner, however, you may not have sufficient time to handle these processes by yourself. For this reason, it may be best to depend on an excellent accountant to help you through.
Know that your financial statement will reflect the financial health and activity of your business that you can show to lenders or investors. A financial statement typically includes the following elements:
Assets
Comprehensive income
Distributions to owners
Equity
Expenses
Gains
Liabilities
Losses
Investments by owners
Revenues
Prepare the Balance Sheet
Prepare the Income Statement
The income statement is also known as Profit and Loss (P&L) statement that lists all your income, expenses, and net income. The net income is equal to your income minus your expenses.
Prepare the Cash Flow Statement
This statement will reflect your business’s cash inflows, outflows, and ending balance during a certain period. Your cash flow statement will contain three valuable sections—operating, investing, and financing activities.
Developing a financial report for your business can be a tricky process. Here are some tips that can help you out:
1. Set Up an Accounting System
Know that there are many accounting systems that you can use. Regardless of which option you go for, it’s essential that you properly integrate it with your business to gain accurate information. If you need further assistance in setting it up, make sure that you have it done by a reputable online accounting firm.
2. Review Your P&L, Cash Flow, and Balance Sheet Regularly
Although it is difficult to track every financial aspect of your business, try and make it a habit to review your P&L, cash flow, and balance sheet regularly. By doing so, you get to have a better understanding of your business’ financial position along with your expenses. These insights will allow you to make changes to boost your financial activities.
3. Log Every Expense
Every purchase by your business should be properly logged, and the same goes for any amount of money that comes in. Record every penny from payroll to net profits. Know that there are tools that you can use for this to make the recording process much easier, especially if you are planning to bring investors into the picture.
4. Hold Regular Accounting Meetings
Make sure to have regular meetings with your accountant, such as it once a month, and have quarterly recap meetings as well. In doing so, your accountant will be responsible, plus you get to have a chance to discuss the numbers. After your meeting, you can schedule another meeting with your team to give them an update.
Conclusion
Developing financial reporting for a business is tedious, and it requires an expert. Aside from knowing these things, it’s crucial to have a reliable Gold Coast accountant to help you out. Find an accountant that you can trust because they will also serve as a valuable business partner that can help make it grow.
We are one of the best companies that offer online accounting services. Get in touch with us today to see how we can help you with your business’ financial reporting procedures!