Accounting Services - Financial Reporting

Accounting Services - Financial Reporting

The financial statements consist of the Balance Sheet (Statement of Financial Position) and the Profit & Loss Statement (Income Statement). The Balance Sheet shows snap shot of business as at the end of financial day’s assets, liability and equity of the business. The Profit & Loss Statement shows the revenue and expenses for a period (usually 12 months). The Statement of Cash Flows reports on a business’s cash flow activities for a period. Most non-reporting entities (small business) are not required to produce the Statement of Cash Flows.

The financial statements are usually prepared at the end of an accounting period in order to gain a true and fair view of the state of affairs of the business. They are usually produced for the end of year financial reporting to meet business tax obligations.

However your business may need to produce special financial statements on the following situations: -

• Tax authorities may request financial statements to ascertain the propriety and accuracy of taxes and other duties declared

• Owners and managers require financial statements to make important business decisions that affect its continued operations. These statements are also used as part of management's annual report to the stockholders

• Government entities may request the business financial statements before they grant business licence or contract work

• Financial institutions need them for granting business loans or other types of business credits

• Financial institutions need periodic financial reports of business for ongoing review and extension of business lending portfolio of their clients

• You may want to sell your business and prospective purchaser to make use of financial statements to assess the viability of investing in a business

• For Non-Profit organisations including charities, clubs, societies and associations requirement to submit annual financial reports

Most non-reporting entities don’t require the audited report. However if your business requires audit service we use our external independent auditor for all our audit service requirements to avoid the conflict of interest issue.

We have extensive experience in preparing financial statements for all type of business entities. If you would like to arrange an appointment or you would like more information, please call us on0425 301 703.