Financial Statement Preparation for Small Businesses in Cary

For small businesses there are four primary financial statements used in the practices of our Cary, NC Small Business Accounting Firm: the balance sheet, the income statement, the cash flow statement, and the statement of shareholder equity.

• The balance sheet provides a look 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 total equity held by shareholders at a given point in time.

Yes, businesses of all sizes in Cary, NC should 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 comply 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. By utilizing both of these financial statements, small businesses in Cary, NC can keep track of and manage their finances without letting any important receipts fall through.

A balance sheet is not a requirement to operate a small business in Cary, NC. However, a balance sheet is an important financial statement that 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.

In other words, keeping an updated balance sheet with help your business tremendously.

The main uses of financial statements are to help a company make decisions about where to allocate resources. They also help to provide information to potential investors so they can make informed decisions when they are considering investing in your company. Financial statements also play a role in assessing a company’s creditworthiness.