All companies need to have financial statements to showcase the status of their businesses. The financial statement is proof of their business’ financial capacity; it is usually designed and structured to display the financial wellness of the business.
A financial statement is a very important document which is required to be publicly displayed in certain occasions. It is a declaration to the shareholders, public, financial authorities and other related governing bodies that the company is financially sound.
A financial statement comprises essential sections such as income, revenue, balance sheet, assets and stock. Each section is very important to reflect the current status of the company.
A 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
The financial statement can be very simple with few items for a small or recent start-up company. More established companies or large firms will have more items to report in a financial statement.
The income statement and balance sheets are the more popular sections of the financial statement to identify the input revenue to the company and the funds available currently.
The balance sheet reflects the final amount after the expenses are removed from the income which gives a good view of the viability of the business. It includes the assets, liabilities and shareholder equity information.
Consider the attached sample template for your convenience.