What are the most basics financial statements prepared by the companies?
Financial statements are just like a financial dashboard of the businesses that gives insights about the financial aspects of a company. The financial statements help the businesses to take the important decisions for the further actions. Although some small businesses might not be aware of these statements, most large businesses are aware of these statements. The financial statement preparation is done mostly while filing the IT returns. Businesses in the UK have some mandatory statements to submit as per the size of the company. Although as per the requirements there are several types of the accounting statements needed, there are some basic statements prepared by the companies. Irrespective of the size of the company, these are basic financial statements made by the company.
Which are these basic financial statements made by most companies?
Some basic financial statements are made by most companies that give the financial summary of the business.
Here are some of these basic financial statements prepared by the companies:
1. Balance sheet
Balance sheet is one of the basic financial statements of the company that shows assets, liabilities, and other shareholders’ equity. In balance sheet, the assets must be equal to the shareholders’ equity and liabilities. On left side of the balance sheet, you will see all the assets of the company, while on the right side there will be liabilities and shareholders’ equity. Balance sheet gives a profound overview of the financial status of the company.
2. Income statement
Income statement shows the revenue made by the company in a specific period. This is a vital accounting statement that shows the income of the company. It will demarcate the expenses and the revenue of the company in a proper way. This statement will show any of the losses or earnings done by the company accurately.
3. Cash flow statement
Cash flow statement shows the records of the expenses made by the company and earnings made by the company. It basically shows the cash flow in the company and the details of the source of cash flow. This statement basically shows the net decrease or increase in the cash of the company in a specific period. This gives a better glimpse of the company performance within a specific period.
These are some of the basic financial statements prepared by the companies. They give a proper financial summary of the company that can help the business owners and the management for taking important business decisions. While deciding the yearly budget of the company, these financial statements play an important role. The above mentioned statements are just the basic statements for all companies, there are many other types of the company where other types of financial statements are needed. So, it is important for proper financial statement preparation which can help the company to bring better efficiency. If you are finding it difficult in making quality financial statements in the UK then you can outsource this activities to the experts. They can make better statements for you that can be helpful to understand the financial insights.
Meru Accounting provides excellent financial statement preparation services for the businesses. They have the qualified staff who are well-aware of regulations in the UK for making these financial statements. They have some standard pattern of making statements which are easy to understand that can give better financial insights. Meru Accounting is a proficient accounting services providing agency across the globe.
