When you start a business, one of the first tasks you’ll need to do is create a financial statement. Financial statements are usually prepared once a year; however, some companies may prepare them quarterly or even monthly. The financial statement should provide a concise summary of the company’s assets and liabilities as well as how much cash was earned or spent over the past period. There are several different types of financial statements that can be used by businesses:
A 10-K is a legal document required by the SEC that contains information about the company’s business, assets, liabilities and capital structure. It must be filed annually with the SEC within 90 days of your fiscal year end.
A sample 10-K is available for free download at [link to sample 10-K](https://www.sec.gov/Archives/edgar/data/%7B25f001198e4b918a5c6655f3cc2a80a%7D001000055_10k_form_990__final_ver002_020316v1_.htm).
The 10-Q is a quarterly report that must be filed within 45 days of the end of each quarter. The 10-Q requires information about the company’s financial performance for the quarter and nine months ended, including revenues, expenses, assets and liabilities.
A balance sheet is a snapshot of the business’s assets, liabilities and equity. Assets are things you own, like cash, inventory and buildings. Liabilities are things you owe, like accounts payable and loans. Equity refers to the value of all of your stockholders’ stakes in the company–it’s what remains after subtracting all liabilities from all assets.
Cash flow statement
The cash flow statement is a financial statement that shows the net amount of cash and … More >>>
Pie and bar graphs are two different types of graphs that display numerical data. Both types of graphs have their pros and cons, so it’s important to choose the right one for your data.
A pie chart is a circular chart divided into slices to illustrate numerical proportion.
Pie charts are used to show proportions of a whole. They’re most effective when dividing data into only two or three categories, but can also be used with more than four pieces if the labels are small enough to fit in the center of each sector.
Pie charts are best for showing percentage increases or decreases over time; however, they don’t do well with large numbers since it’s difficult to see how much one slice represents in relation to another.
A bar chart is a rectangular chart that illustrates numerical data by displaying the height of bars, which are typically horizontal but may be vertical.
A bar chart is a rectangular chart that illustrates numerical data by displaying the height of bars, which are typically horizontal but may be vertical. Bar charts are best for comparing numbers over time, or grouped into categories or classes. For example, you might use a bar graph to show sales figures for each month of the year in your business’s annual report.
Bar graphs can also be used to show the number of items in each category (for example: how many cars were sold by make) – but it’s important not to confuse this kind of … More >>>
If you’re in business, it’s likely that you’ll need to understand and prepare financial statements. Financial statements are required by law and other businesses, so you can’t get away without them. But what are the right documents for your industry? We’ll talk about the balance sheet, income statement, cash flow statement and how each of these documents can be used.
The balance sheet is a snapshot of the company’s financial position at a given point in time. It shows the company’s assets, liabilities and equity. Assets are things that provide future benefit to the business such as cash and inventory; liabilities are debts or obligations owed by the business such as accounts payable; equity represents owners’ investment in their company after deducting all its liabilities from its assets
- The income statement is a summary of revenue and expenses for a specific period. It shows the company’s profitability and therefore, it’s also called the profit and loss statement (P&L).
- An income statement starts with revenues from selling products or services and then deducts costs associated with those sales such as cost of goods sold (COGS), operating expenses, taxes, etc., to determine net income or net loss for the period.
Cash flow statement
Cash flow statement is a financial statement that shows how much cash is generated, spent and retained by a business over a period of time. It is often used to evaluate the performance of a business by providing an insight into its ability to generate … More >>>
If you’re getting ready for a home renovation project and have hired professional painters and decorators Basingstoke, you can sit back and relax knowing that the technical aspects of the job are in good hands. However, there are still a few steps you’ll need to take as you get ready for the renovation. Here are a few tips to ensure you are well-prepared:
1. Remove the Smaller Items
First and foremost, you’ll want to remove the smaller objects, such as ornaments and knick-knacks, from the rooms you intend to apply a fresh coat of paint. The number of items you’ll need to move will vary depending on the room, but it’s essential to ascertain that they’re removed from the area being painted and stored securely elsewhere. This will not only minimize the risk of damage but also ensure a seamless painting process.
2. Remove Mirrors, Frames and Other Hangings
Before your painter arrives, it’s important to take down all frames, mirrors, posters, and wall hangings. Just like the smaller objects, the number will vary from room to room, but it’s crucial that you take them down, wipe off any dust or cobwebs, and either wrap or protect them before storing them elsewhere. This will not only prevent any damage during the painting process but also allow for a uniform colour on the wall if you decide to change your decor in the future.
Whether or not to remove the nails from the wall is a personal preference that you … More >>>
A business financial statement is a report of the company’s financial performance and condition. These statements are prepared from information contained in the books of account and consolidated with other information that has been gathered from sources external to the company.
The Income Statement is a financial statement that shows the revenues, expenses and profits of a business over a given period of time. It’s important to understand how to read an income statement because it will help you make better decisions as a manager or investor in a company.
The following sections will explain what each line item on an income statement means and how you can use this information to assess whether or not a company is performing well financially:
- Gross profit (or gross margin): This is calculated by subtracting cost of goods sold from total revenue
- Operating income/net operating profit after taxes (NOPAT): This represents how much money your business has made after paying for all operating expenses such as salaries, rent, utilities etc but before taking into account taxes or interest payments
A balance sheet is a snapshot of a company’s assets, liabilities, and equity at a given point in time. Assets are things that have value to the business–cash, inventory, property–while liabilities include debts owed by the company (think credit card payments or loans). Equity is the difference between assets and liabilities; it represents how much owners have invested in their business plus any profit they’ve made since starting out.
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