It is so important to prepare professional financial statements when running your own business. Even with the assistance of an accountant, like Coleman and Co, it is vital that you understand your own accounts to make numerous responsible choices regarding your finances with ease.
If you are wondering whether or not you need to prepare financial statements, then the answer is YES. Although you may have read other articles and blogs that said statements are a waste of time, there is nothing more black and white than being able to see your profits with ease and make financial decisions responsibly on your own. So why would you not want that?
Other reasons for these statements being an advantage rather than a time waster are:
- Better decision making
A financial statement is one of the clearest forms of being able to see your finances for what they are. Other than just viewing your bank statements, you are able to view your company finances as a whole, money in and out, before making final decisions on investments and profit margins.
- On-time payments
This is a way to ensure that your customers are paying on time, and paying the right amounts. You can easily make sure all suppliers pay on time and can keep track on cash flow as well as predicting future cash flow.
- Tax preparations
You can regularly update your tax allocations and keep your finances in order for the end of year accounts. You can also record all receipts, money in and out, to make sure that you don’t have a drawer full of unmarked receipts when it comes to April 14th (for beginners who are unaware what this means, this would be a nightmare to deal with!)
- Proof of your profits
A well prepared financial statement from Coleman and Co will allow you to see your profits with ease. You can see the overall success of your business and be able to show potential investors the benefits of your business rather than just tell them about it.
- Never miss a costly mistake
Having a set schedule for reviewing your financial statements will allow you to spot any mistakes that are being made and any major losses your business is making. By viewing these with ease, you can make changes so they don’t happen again and get your finances back on track in no time at all. As well losses you can see any charges, fraud activities and any other unauthorised payments.