The financial statements that you must understand in your business

[tyrim88]

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.

The reason why most busineses fail os the issue that bothers on lack of proper record keeping,which comprices of stock inventory and outflow of stock,and also financial inflow and outflow of revenue.This issue if not properlly handle can affect the business.

 

[Ezekiel]

As a business owner you must take your records book very important as it is the way to execute judgement on matters concerning your business,to me I will really be concerned with both the profit and loss book.

 

[Blessedsam60]

You are very right. There are things we must understand in business. Mathematical things to keep our business stable. Financial literacy is always needed when it comes to business

 

[nimzy]

Well the bookkeeping is very important in any kind of business operation this will helped you to know the kind of transaction you are running either progressing or falling backwards.

 

[Kelly5]

You must have to look at all these statements in the various accounts books for your business. The profit and loss account tells you your gains and losses uncured in your business per time

 

[Stylex]

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?

yes that's true some people venture in to a business,without having the idea of book keeping or accountants,they try to give some people to take care of it,which might be very risky sometimes .

 

[Setho]

These three documents are very important for you to know how the business is being run and to see if you are going into a profit or a loss.

 

[eLdavis]

As a business owner, especially someone who has people working under him or her, it is highly recommended that you should understand how to read financial statement to avoid being cheated and to be able to spot any foul play in the accounting department.

 

[Lens]

If a business wants to be successful, you must follow the points stated above. This will enable you know whether you are actually making profit or losing. If a business could not assess this, then, it's not worth it or the management do not have managerial skills.

 

[Dagm1]

Every one of the monetary declarations are actually important in business. Even though you are business proprietor as well as you are preparation to utilize an expert to perform the function, you should a minimum of have actually the fundamental comprehending as well as understand ways to check out these monetary declarations.

 

[Ghost]

This is basic accounting. I remember being thought this in my junior years in school too bad I didn't take it seriously cos I felt I would have no use for it

 

[Maayong]

To my own understanding I will like to say that any company should be aware of their financial situation and know the actions to take

 

[Jhayms07]

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're very right,these are key notes to take if one wants a successful business and wants the business to move forward. I would take all these into consideration

 

[Ralphjoe]

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?

I think every business owner should be able to understand their profit and loss account of its business as this is the most important account that will show if the business is making profit or loss.

 

[nimzy]

Well you gave a good idea because I believe without the financial statements of transaction I don't think the business or the company will have a direction of were its heading to and what achievement have it achieved since it started operation.

 

[Heatman]

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?

When don't know anything about profit and loss in your business, it's definitely going to amount to you losing your business capital without knowing till your business is dead.

 

[Kubiat-Abasi]

I'll recommend it's best to hire an experienced or a professional account officer to keep daily records for accountability.

 

[YERUS]

I feel a business person should also be well-versed in profit and loss account.
This account is prepared at the end of a business year.
Every business man or woman should be able to calculate this so as to know how much profit or loss was accrued during the business year.

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?

 

[Ceeny007]

I agree with you on those facts you stated above,but not a lot if people use these books,they basically want to know how much is coming in and going out

 

[Toyoabasi]

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?

I had to be opened to the profit and loss account as a farmer.
This allows you to determine your success or failure at the end of a agricultural season.
The income statement account and balance sheet are also of utmost importance.