Post-crisis, most small businesses are in search of tools and guidance to return to a better shape. At such an uncertain time, closely detecting the financial and operational insights can help adapt and improve business performance. For this, you need to prepare and analyze certain reports as discussed below:
- Balance Sheet: It monitors your assets, equity, and money that you make through business investments. The financial statement sums up your company’s liabilities, shareholder equity, and total assets. It is used with your income statement for a full snapshot of your business, calculate financial ratios, and conduct fundamental analysis.
- Accounts Receivable Aging Report: It classifies the receivable dues from users as per a defined time length. It breaks down the reports into several aging categories like current, 1 to 30, 31 to 60, 61 to 90, and above 90 days. It assists you to control the collection process, gauze your company’s customers' financial health, and identify the allowance for debts.
- Loss and Profit Statement: The income or profit and loss statement demonstrates the time-based revenue potential of your company. The report specifies your company’s profitability. External and internal stakeholders use it to attain profitability and to access the risk level.
- Cash Flow Statement: The success of your business depends upon the cash flow statement. It gives an essential perspective on the balance sheet and income statement. The report shows the in and out cash flow of your company at a specific time and helps you to watch the actual earning.
While you can’t maintain all these reports yourself, accounting services in Sydney, NSW can help.