Businesses must compile financial reports regularly for a wide range of reasons. Stakeholders need financial reports to get a view of your company’s financial health, lenders need them to determine if you qualify for loans, and investors need them to gauge whether it’s worth investing in your company. Financial reports are required in countless situations — and there are many different types of financial reports to consider.
Collecting and organizing your financial information to create such reports is a time-consuming process. Not to mention that the success of your business relies heavily on the accuracy of such reports. Such a detailed task is best left to a professional financial reporting service, which we offer here at J.R. Martin & Associates.
Arguably the most important financial statement is the balance sheet. It lists your liabilities and your owner equity, which are combined to show your company’s total assets, providing a big picture view of your overall finances. It contains a significant amount of financial information, including accounts payable, taxes, debt, personal loans, startup capital, retained earnings, and more.
Balance sheets should be generated every month or at least every quarter, which can be quite time-consuming. We can help lessen the workload by putting together accurate balance sheets regularly for your company.
An income statement declares the profit your business made over a specific period. Income statements are produced either on a quarterly or yearly basis. They also indicate any losses that you may have incurred during that period. Besides providing an idea of how your business is doing, you can also use an income statement to project upcoming sales and expenses. You must accurately calculate your income statement for it to be useful, which is something that our team will do.
Cash flow statements are similar to income statements in that they highlight how profitable your company is over a specific period. However, they differ in that they focus on how much money is going in and out of your business. Since your company is likely paying its expenses and purchasing new inventory every month, you should generate monthly cash flow statements.
A bank reconciliation report compares your bank statement (or statements) with your company’s financial records. Bank reconciliation reports are crucial because they allow you to identify any discrepancies. For instance, bank fees may appear on your bank statement that you did not account for in your bookkeeping. Correcting such discrepancies is essential to maintain an accurate financial view of your business. At the very minimum, you should do a bank reconciliation report every month (when you receive your bank statements).
Comparing the numbers is a time-consuming task, and dealing with any discrepancies can be a massive headache. Leaving it to a financial reporting service will ensure that your bank reconciliation reports are produced regularly and that any discrepancies are addressed.
A general ledger detail report is essentially a master record of all of your company’s accounts. It consists of all of your company’s financial activity during a specific period and is usually organized by account type and date. Maintaining a general ledger detail report requires constant work since account activity can occur daily. However, it’s imperative since a detailed general ledger report will allow you to:
Small businesses throughout Northern California depend on accurate and timely financial reporting for a wide range of reasons. Not only do you need financial reports to monitor your company’s financial health, but they are required to forecast profitability, secure investments, and loans, and make more informed financial decisions. Here at J.R. Martin & Associates, we can provide extensive financial reporting services that meet your business’s needs and that you can rely on to drive your company’s success.