Creating Accurate Financial Statements for Bookkeeping Purposes

Financial statements are known to be the official reports of the well-being of an organization’s bookkeeping and include the statement of cash flow, the balance sheet, and the income statement. You should produce these statements every quarter at a bare minimum, while many businesses generate them monthly as a means of tracking changes in expenses and income. Here is what each financial statement does:

Statement of cash flow: how your company’s cash on hand has changed.
Balance sheet: a list of your company’s physical assets, liabilities, and equities when the report is released.
Income statement: shows the revenue and expenses of the business and lists a specific period’s profit or loss.

You should submit financial statements with your annual tax return; they are also an excellent way for managers and board members to analyze the company’s performance.