Basics of Accounting
No matter how you handle the accounting for your company, it's a good idea to understand the fundamentals of accounting. You will be better able to manage your business and financial decisions if you are able to read and write these fundamental documents. By doing so, you will gain an understanding of your company's performance and financial health. Even if you work with a professional, consulting firm, or have employed a certified public accountant (CPA), we recommend that you obtain the following documentation. They give you useful measurements and pictures of your company's performance. Income Statement Balance Sheet Cash Flow Statement Bank Reconciliation Statement
An overview of operations for the entire year is provided by the income statement. Sales or revenues are the first items on the income statement, and net income is the last. The income statement, which is also known as the
An organization’s financial situation at any particular date is captured in the balance sheet. It gives a general summary of how effectively the company manages its assets and liabilities. On the balance sheet, analysts can learn more about long-term vs.
Cash Flow Statement
The income statement and balance sheet are combined to create the cash flow statement. According to some analysts, the cash flow statement is the most essential financial statement since it reconciles net income with cash flow. Here, researchers can see
Bank Reconciliation Statement
A bank reconciliation statement compares an entity’s bank account to its financial records and describes banking and commercial activity. Statements of bank reconciliation attest to the processing of payments and the depositing of cash earnings into a bank account. A