Businesses and individual will find themselves in a financial situation where they need to account for their financial capacity. A business financial statement is usually designed and structured to display the financial happenings of the business or individual.
A business financial statement can be very complicated to the non-financial savvy. But it contains some essential sections such as income, revenue, balance sheet, assets and stock. Each section is very important to reflect the status of the company. The bottom line figure of each of these sections reflects the financial health of the company.
A business financial statement template may require the following information:
* Company’s Name & Address
* Financial Year of Company
* Date of Presentation
* Income statement
* Revenue statement
* Balance sheet
* Assets sheet
* Stock sheet
Although every section of the business financial statement is important to reflect the financial state of the business, the more common statements that are scrutinized are the income statement and balance sheets.
The Income statement records the input of finances to the company which is always the first financial sheet required by any shareholder to confirm how much money the company drawing in from its businesses.
The balance sheet is another important account in the financial statement as it records the expenses minus from the income to reflect the balance amount in the company, which determines the viability of the business. It includes the assets, liabilities and shareholder equity information.
Consider the attached sample template for your convenience.