The financial statements that you must understand in your business

[Mostee501]

Accounting is an important aspect of any businesses,it is through accounting that you will know the progress of any businesses because all business transactions will be written down(book keeping),all financial activities of a business is dealt with by the accounting department.

 

[Emma Aneni]

What an elaborate article. I have come across all these in school but I didnt even understand it. Maybe I understand yours because of its succinctly and well written. I can't wait to read your article on other financial statement that we have.

 

[Damismiling]

As a business, entrepreneur or financial staff, It is needful that the financial statement and records are properly analyse, and treated well so as to continue the business to keep running, to disallow break down

 

[Xerryl]

You have said the major one. It is very important to understand the financial statement, because any business without proper financially monitoring will not be able to succeed. Either you take care of you Business financial records by yourself or you hire someone to do it, you have to be always cross check.

 

[IamDozzy]

The two most important financial statements a business owner must know to prepare or read I the Trading, Profit and Loss Account and the Balance sheet. Those two are the basic financial statements any business owner or entrepreneur must know how to prepare in order to know what was achieved in the previous market year.

 

[Sariana23]

Financial statements are of paramount importance to companies. You should have some knowledge of them, even if the accountant is in charge of your finances. This way you will have a better understanding of the income and expenses reported daily in your business, and at the end of the month you will have clarity and if you have to make some adjustments you will have no doubts.

 

[Dowenship]

To me! For a new business you must know how to calculate or record your financial statement, a new businesse person handing over that role will not grow financially because the accountant the role is being handed over can steal out of the money before making any statement.

 

[zahidhussain]

Financial statement mean knowing about your buisness also knowing about your buisness workers idealism social works interaction with emoloyees also maintain the record of income profit or loss

Post automatically merged: Feb 27, 2021

Financial statement mean knowing about your buisness also knowing about your buisness workers idealism social works interaction with emoloyees also maintain the record of income profit or loss

 

[Good-Person]

Actually, a person must have basic knowledge about accounting. I believe that a business owner must have basic accounting skills in order to understand the expenditure, revenue, and total income and keep accounts of his business. A business owner can also take help of accounting software in order to maintain records.

 

[Setho]

It is important that in business you have sound understanding of the financial statements which includes the income statement because it guides you on how the business is going and the decisions to be made

 

[Good-Person]

It is important that in business you have sound understanding of the financial statements which includes the income statement because it guides you on how the business is going and the decisions to be made

I also believe that it might be possible to make your own accounting system in our business. There is no such rule that you should stick to whatever you were taught in the college. You can create your own ledgers and keep financial records on microsoft word.

 

[Mawome]

The financial statement or financial rules that one must guide against I think that's what you mean by that, am an old man, it should start with your business plan with someone, you really trust and someone you enjoy leaving with ok? So feel free to come out nobody is looking at.

 

[Good-Person]

The financial statement or financial rules that one must guide against I think that's what you mean by that, am an old man, it should start with your business plan with someone, you really trust and someone you enjoy leaving with ok? So feel free to come out nobody is looking at.

I am not sure what you are trying to say. But I think you mean it is okay to share the information of company's accounts with the person who is your business partner. Am I right? Well, if that is the case, then I think that it is compulsory for you to share information related to accounts with your business partner becuase he or she is your business partner and he or she has the right to know about company's expenses and total income.

 

[Mawome]

I am not sure what you are trying to say. But I think you mean it is okay to share the information of company's accounts with the person who is your business partner. Am I right? Well, if that is the case, then I think that it is compulsory for you to share information related to accounts with your business partner becuase he or she is your business partner and he or she has the right to know about company's expenses and total income.

We are on the same page bro, it's the same point but with different understanding, well, sharing your experiences or information related to the account with your business partner is actually a good idea, at least you have have a good standing with your partner, he in turn can also share with you information he got.

 

[Adasun]

The answer to this your question glaring.you must have an idea of what the business you are veturing into entails especially if you handling the business yourself.this statement does not hold bit your money is working for you.

 

[Adventurer]

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?

This write-up is essential for every business owner. Statistics show that 70% of small businesses fail within the first year and one of the reasons is bad financial management. With this I believe managing finances become easy.

 

[Billy]

The single most important financial statement in my business is the profit and loss account. Next is the balance sheet and the trial balance. The info i gather from these documents helps me make huge decisions that help me propel my business.

 

[Nomad]

If you do not maintain your financial statements, how can you you find how how your business is doing. In order to calculate profit and loss, expenses and revenue, etc. you need to maintain your financial records

 

[Simpley]

you need to study and evaluate many financial statements in order to understand the financial condition of a company, both on its own and within its industry: balance sheets, income statements, cash flow statements, and annual reports. In the story they tell when reviewed together, the meaning of these documents lies.

Post automatically merged: Apr 2, 2021

It is very important to understand the financial statement, because any business without proper financially monitoring will not be able to succeed. Either you take care of you Business financial records by yourself or you hire someone to do it, you have to be always cross check.

 

[Deebabs123]

Financial statements are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.