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 >>>