The financial statements that you must understand in your business

[Hasan Raza]

Definitely dear you said well because every business need accounts management and financial statements are the basic need because without these you can't exactly know the proper position of your business. Because whenever you don't know about the assets and liabilities of business you can't handle it or make any decision. The important one is the cash flow statement because you can easily know the cash in hand and incoming and outgoing if cash. The income and expenditure accounts also helpful.

 

[arrain3786]

Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. ... Income statement. Cash flow statement

 

[Herzhan]

Definitely dear you said well because every business need accounts management and financial statements are the basic need because without these you can't exactly know the proper position of your business. Because whenever you don't know about the assets and liabilities of business you can't handle it or make any decision. The important one is the cash flow statement because you can easily know the cash in hand and incoming and outgoing if cash. The income and expenditure accounts also helpful.

To understand a company's financial position—both on its own and within its industry—you need to review and analyze several financial statements: balance sheets, income statements, cash flow statements, and annual reports. The value of these documents lies in the story they tell when reviewed together

 

[Dorcey]

To understand a company's financial position—both on its own and within its industry—you need to review and analyze several financial statements:balance sheets, income statements,cash flow statements, and annual reports. The value of these documents lies in the story they tell when reviewed together

 

[mubinadaddy]

You have really spoken well already the keys you gave are very vital in other to keep any business going on a smooth sail cause without balance sheet you wouldn't be able to know the products that is an asset to you or liability and without income statement you wouldn't also know if you are progressing or not. Kudos to you.

Post automatically merged: Feb 2, 2021

You have really spoken well already the keys you gave are very vital in other to keep any business going on a smooth sail cause without balance sheet you wouldn't be able to know the products that is an asset to you or liability and without income statement you wouldn't also know if you are progressing or not. Kudos to you.

 

[Adebayonle7]

Nice write up and good explanation and important points. I feel these 3 should always be a top priority to every business owner or director. Many businesses fail due to bad finance management and many a times, it completely ends such businesses. If these 3 points and part of the business management are strongly handled frequently, there is a higher chance of survival and improvement for the business.

 

[Richard92]

As a business owner you must understand the profit and loss account and also know how it operate. As a business owner you must know what comes in everyday and what goes out of the business everyday.

 

[Ojonuyo]

Yes, i agree with you totally on this. Many business owner do not see the need to understand their business plan and records. At the end of the whole business section they end up wondering why their business is not generating much profit. And like you have said it is advisable to hire someone.

 

[Ralphjoe]

The owner of a company or business should be well versed in the profit and loss account as it deals with company making either profits or loss. You will also learn the incomes of your business and the expenses.

 

[Tariq Nazir]

It is a big notebook with a line at the middle. On the left is the incoming money like when there is a sale or when there is a payment. On the right portion of the page will be written the outgoing money like payments for supplies and other expenses. At the end of the period you will total all the items on the left and all the items on the right

 

[Akinwale701]

Generally when someone ventures into a business, one of the most important tasks is the bookkeeper or the accountant that manages and records the finance of the business. If you do not have the necessary skills to take on this task by yourself then you can revert it to another person that your employee, who is experienced and can handle such tasks as well.

Either way, whether you are handling it yourself or giving it to someone else to manage, you have to be able to understand some of the basic financial statement to ensure that you stay up to date with how your business is progressing. The three financial statements that I believe that you need to be versed in are:
1. The balance sheet - this shows yoru assets and liabilities of the business and ensures that there are no discrepancies
2. The income statement showing the expenses and the income of the business
3. The cash flow projection to show how cash is coming into and being spent from the business and may include future predictions as well.

Are there are other financial statements or requirements that you feel that an owner should be well versed in?

Well, I think one should be well versed with other things as far as financial statement is concerned. We have accrued and prepaid expenses and some assets that do depreciate. business owners should take note that they do not spend much on depreciable assets as they reduce the value of the business in the long run

 

[Oyeleye42]

Financial statements give business owners insight into how their company is performing. It is crucial for a business owner to understand how to read a financial statement. Otherwise, the owner would never know whether the company is managing its money wisely.

 

[Ezzyoj]

Business finance, is one of the core aspect of a business. As a business owner, one must be exposed to financial management and also finance analysis. You must well grounded in this even if you are handling it yourself or hiring someone to handle it. So many businesses have been runned down because of how the finances is handled.

 

[Henrywrites]

The cash flow is a special document or book in business that many businesses always neglect. You need to understand how money flows into the business and how it is spent in order to be able to handle critical financial issues when they arise in the business.

 

[Eodine]

A good business owner would do good to have an idea of each entry books in his organization but I think the most important book is income statement so you know your expenses and if they are more or less than your income so you can plan for better results

 

[Kunkun]

To completely understand your organization's monetary situation, there are 3 key fiscal reports you should think about:

the Balance sheet, which shows your organization's resources, liabilities and total assets on an expressed date,

the Income statement, which shows the total compensation of your organization over an expressed period, and

the Cash flow statement, which shows the inflow and surge of money coming about because of your organization's exercises during an expressed period.

 

[Joseph555]

Generally when someone ventures into a business, one of the most important tasks is the bookkeeper or the accountant that manages and records the finance of the business. If you do not have the necessary skills to take on this task by yourself then you can revert it to another person that your employee, who is experienced and can handle such tasks as well.

Either way, whether you are handling it yourself or giving it to someone else to manage, you have to be able to understand some of the basic financial statement to ensure that you stay up to date with how your business is progressing. The three financial statements that I believe that you need to be versed in are:
1. The balance sheet - this shows yoru assets and liabilities of the business and ensures that there are no discrepancies
2. The income statement showing the expenses and the income of the business
3. The cash flow projection to show how cash is coming into and being spent from the business and may include future predictions as well.

Are there are other financial statements or requirements that you feel that an owner should be well versed in?

You are correct with you are as assertion, a good businessman must understand the financial record of his company or else he is bound to run into unnecessary lost because of his lackadaisical attitude toward record check it is not enough to have an an accountant in your company

 

[nasiusman95]

To understand a company's financial position—both on its own and within its industry—you need to review and analyze several financial statements: balance sheets, income statements, cash flow statements, and annual reports. The value of these documents lies in the story they tell when reviewed together

 

[Blessingedidiong]

Reviewing of a company's financial report hepls to monitor the company's financial progress and strength. The cash flow statement,annual report, balance sheet, credit and debit accounts must be kept updated at all times and monitored.

 

[Asad Ali]

The financial statements you will understand will depend on your career background or on any you have taken an orientation, and apart from that, the basic thing is to know when you understand them, but even if you are able to access the entire financial position of the business report, you might not be able to interpret an account statement