Our primary objective with taking on any new bookkeeping client is producing financial statements. The two most important are the balance sheet and the income statement. From these two, a statement of cash flows can be created.
Typically, a bank will require these statements to accompany any loan applications coupled with a business’s two most recent income tax filings. If you want to borrow money, then the bank is going to want to see that you can pay back the loan.
The income statement provides a good gauge to determine an entity's loan worthiness. Your business will have to show profitability to secure a loan if you lack collateral. The balance sheet shows assets that can be used as collateral. The balance sheet also shows debt. Too much will make it difficult securing a loan. The statement of cash flows will show a lender if you are debt laden or have positive cash flow to pay back the loan.
It is important for business owners to understand financial accounting. We provide financial coaching as part of our services. We analyze the numbers together for greater insight. Drill down to discover underlying costs or greater insight into what is driving revenue. Numbers providing metrics to determine if you are meeting financial goals. We help make sense of your numbers!
If you are a business owner struggling to know your financial position, partner with our team. We work through finely tuned processes, are experts in our field, and aided with the latest cloud-based technologies. We help advise business clients, cut administrative costs, and identify metrics that drive revenue & increase profitability.
And all that starts with Financial Statement Production!