Financial Statement Preparation

A financial statement demonstrates the basic accounting equation: Assets = liabilities + equity. Assets include all items of value that the business owns or is owned, and liabilities are and what the business owes. Through this, we can work out the owners’ equity in your business.

Asset, Income & Cash Flow Testing

In addition to an assets test, a financial statement generates an income statement, also known as the profit and loss statement. This shows the profitability over a set period. Finally, converting finances from accrual basis to cash basis examines the business cash flow cycle.

Michael Bowman provides a full financial statement with annual tax returns. We use this report to examine the profit and loss and assess liabilities in conjunction with the tax return.

The Importance of Regular Financial Statements

Regular financial statements for businesses are necessary. Financial statements help business owners make operating decisions and to ensure creditors evaluate loan applications properly. It’s also an opportunity to arm individuals with the information needed to make smart investment decisions.

How Michael Bowman Can Help

Our financial statements are offered as part of our annual tax return service because we use it as a snapshot to base our advice on. Your financial statement is how we understand your company’s financial position and it is your decision-making tool.

We will uncover who is paying on time, 30 days late, 60 days late and longer. We help you use this financial statement to determine which customers are good for your business and which aren’t and the value of your inventory.

We will look at areas that may need extra research and attention, such as assistance in generating a healthy cash flow.

This is the Answer to Almost Any Question about Your Business

Your financial statement is your strategic tool to help you run a successful and profitable business. Stay on top of your finances and book in your financial statement.