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A financial statement for an SME is a document that details a company’s financial operations. These plans depict the current state of your small business and forecast the company’s future vision and plans.
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A balance sheet depicts the assets, liabilities, and shareholder equity of a company over a period of time. A balance sheet includes all of your assets including cash on hand and in the bank, the value of your equipment, the value of your merchandise in stock, and any other financial assets.
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An income sheet illustrates a company’s revenues, costs, and profit or loss in a given time period such as 12 or 24 months. We collect all forms of earnings such as wholesale and retail sales, as well as rental revenue, and all possible sources of revenue. We also add up all of your expenses, including materials, payroll, advertising, utilities, equipment, and company property rent.
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A statement of cash flow shows the inflows and outflows of cash within your business. The ending balance is also shown in a cash flow statement over a set period of time. Operating activities, investment activities, and financing activities are the three parts of a cash flow statement.
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