Whether you want to secure a bank loan to grow a small business, bring in investors for your corporation, or simply gain insight into the financial well-being of your company, accurate, timely financial statements are key to meeting your goals. At Steward Ingram & Cooper PLLC, we provide comprehensive financial statement services for businesses in Chapel Hill, including reviews, audits, and compilation.
Business Financial Statements
Our CPAs will generate and prepare the four key financial statements you need to determine your financial standing, plan for the future, and provide accurate information to lenders, stockholders, and potential investors.
A balance sheet provides a snapshot of your organization’s financial status at a set point in time. It lists the total assets (such as cash, inventory, and property) as well as the liabilities (including accounts payable, loan payments, and payroll) to show the overall worth and equity of the business.
An income statement, or a profit and loss statement, shows how profitable a business is after subtracting expenses, including rent, loan repayments, and payroll, from revenue. More in-depth income statements break down revenue and expenses into detailed categories to provide the business owner with what goods or services have the highest profit margins or where they can trim expenses to increase profitability. profit your business makes after subtracting all expenses from revenue.
Statement of Shareholder’s Equity
Equity is another term for an organization’s net worth. A statement of shareholder’s equity provides insight as to how much money each shareholder or owner would get if the assets were liquidated, all debts and liabilities were paid, and the amount left over was divided according to the percent each individual owned in the company. An equity statement also shows how the company’s net worth changes from one time period to the next.
Cash Flow Statement
The cash flow statement shows how cash and liquid assets move in and out of the business. It provides a look at how cash is generated and used during a specific time and shows lenders what kind of operating costs and financial activities the business has.
Why Are Financial Statements for Businesses Important?
Having a Chapel Hill CPA firm generate your financial statements can benefit you for several reasons, whether you have a large corporation or are a sole proprietorship.
Understanding Financial Health
Having a clear picture of your business’s financial health is necessary for planning for the future, whether you want to grow and expand or you can weather a period of limited revenue. Financial statements show trends of high and low revenue throughout the year so you can plan accordingly for busy or slow periods, create budgets, and improve your operations.
Secure a Loan
Banks and lenders usually require financial statements to determine if you’re likely to be able to pay back the loan or if you’re at risk of defaulting.
Just like banks, potential shareholders and investors will want to see your financial reports to get a better idea of their investment potential.
Why Choose Steward Ingram & Cooper PLLC
Businesses in Chapel Hill and the surrounding areas have relied on experienced accountants at Steward Ingram & Cooper, PLLC since 2000. We provide comprehensive accounting and bookkeeping services, including financial statement preparation to help you better understand your business finances, make informed decisions, and plan for the future. By choosing our CPA firm, you’ll have access to a financial partner who is dedicated to helping you succeed.
What do financial statements include?
Financial statements are reports that summarize a business’s cash flow and financial position. Financial statements include three important documents: an income statement, a statement of cash flows, and a balance sheet.
What are business financial statements used for?
Financial statements determine a company’s financial health and are looked at closely by market analysts, investors, and creditors to determine a company’s potential financial position. This is especially important when you apply for a loan or present yourself at a shareholder’s meeting.
How long should I keep my personal financial records?
The IRS offers a number of guidelines for financial record keeping. However, as a general rule, business owners should keep financial records for at least three years after the date taxes were filed.