Financial Statement Services

Our accounting team at Hart Accounting Services can help you get a handle on your record-keeping, as well as prepare your financial statements when you need them. Take the stress out of the year’s end and start planning how you’ll grow your business instead.

Knowing the financial state of your business is the key to building up a thriving company. One of the most common ways to do so is through your financial statements, which give a comprehensive picture of your finances for the past year. These statements don’t just record income and expenses—they also note your cash flow situation and your assets, giving you plenty of data to make informed business decisions.

Accurate financial statements depend on accurate and complete record-keeping throughout the year. Many small business owners struggle to maintain their records since recording every transaction can be time-consuming, tedious, and may become overwhelming.

Our accounting team at Hart Accounting Services can help you get a handle on your record-keeping, as well as prepare your financial statements when you need them. Take the stress out of the year’s end and start planning how you’ll grow your business instead.

Your income statement records your profits and losses over the specific accounting period that’s designated. It has several other names, including “profit and loss statement,” and it shows you how much money your company made or lost in the year.

Besides providing a net loss or profit, you can also use the income statement to determine your gross profit for the year, whether your expenses increased or decreased, and your most profitable (and unprofitable) revenue streams.

We typically prepare income statements for our clients every quarter, as well as one for the financial year-end. It’s a valuable tool in your arsenal to help you plan future business activities, and we’ll go over it in detail with you once we’ve generated the report.

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The balance sheet looks at assets such as cash, inventory, property, along with liabilities, such as long-term debts. The balance sheet’s primary purpose is to show investors what assets the business has, which affects its net worth. If you’ve issued stocks to shareholders, their equity will also form part of the balance sheet.

While the balance sheet isn’t as useful for short-term business planning as the income statement, it still shows your company’s relative worth and attractiveness to investors and shareholders. Balance sheets typically form part of the year-end financial documents, and investors may request them before deciding to invest.

Many people confuse a cash flow statement and income statement because both show money flowing in and out of the business. The main difference between the two is that a cash flow statement looks at cash inflows and outflows, while the income statement also looks at non-cash incomes and expenses.

As with the income statement, the cash flow statement provides lots of valuable information about your business. It’s even more useful in the context of the two other statements, which is why it’s a good idea to sit down with your accountant and discuss the implications of your financial statements.

Once we’ve prepared your financial statements for a given period, we’ll always schedule a meeting to discuss what they mean. Our accountants will clarify any questions you may have and point out the noteworthy points that the statements reveal about your business. We’ll even identify potential growth opportunities to take your business to the next level or identify potential issues and offer solutions to address them. 

Frequently Asked Questions

Here are some questions business owners frequently ask when they consider hiring accountant

What are financial statements?

Financial statements are a snapshot of your business’s financial activities. They provide a valuable overview of your business’s overall health and help you identify avenues for growth. Investors and shareholders frequently use financial statements to decide whether or not to invest in a particular company.

Why are financial statements important?

Apart from providing an overview of your business, financial statements are important documents you’ll need to produce when applying for a loan or speaking with investors. Since financial statements are so important in decision-making, they must be accurate and complete, which means ensuring that your record-keeping process is accurate and complete as well.

Should I hire an accountant to generate my financial statements?

Yes. Generating financial statements requires financial expertise and familiarity with accounting systems. If you use accounting software, you may want to utilize the automatic functionality to generate your own, but you may unwittingly add incorrect or incomplete information.

Working with an accountant offers several benefits over relying on software. As we get to know your business, we’ll quickly pick up on potential errors and correct them before releasing the statements. We’ll also help you make sense of what the statements mean for your business and advise you on potential future business strategies.

Having an accountant on your side can make running your business significantly easier. At Hart Accounting Services, we believe in forging lasting, mutually beneficial relationships with our clients. We provide high-quality services and customized accounting plans.

Whether you need help with your financial statements today or are looking for a business partner for life, don’t hesitate to give us a call today!

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