Talking Cents

Our small business accountants in Sydney tell you about the basic statements you need

As a business owner it is crucial for you to be aware and constantly monitoring the major accounting statements that you will have to understand and utilise. Our small business accountants in Sydney will tell you about the basic statements every business needs to understand.

As a small business it may difficult to pay for a business accountant to go through all of these in detail for you, so we will give you a rough breakdown on what each one is:

• Income statement – this explains your revenues, expenses and profit & losses which are all generated for the current financial quarter, month or week
• Balance sheet – talks about the assets, liabilities and owners equity that are currently invested into the business for this quarter
• Cash flow statement – covers the amount of money that is coming into and out of the business, this is also a great way to cross-check your profit and loss statement to see if the values add up
• Retained earnings statement – covers the current changes to equity in the business, this report format varies as it can mention current stock levels, dividends and changes caused by the profit and loss statement

They are the most common statements that any owner of a business will have to go over and understand. Our small business accounting team in Sydney can show you how to implement and understand what each of the changes mean.

Feel free to get in contact with our small business accountants in Sydney with any enquiries that you may have or you can check out our services here.