Financial statements are a collection of summary-level reports about an business’s financial results, financial position and cash flows which include the income statement, balance sheet, and statement of cash flows.
Financial Statements are useful for the following reasons:
There are few downsides to issuing financial statements. A sober concern is that they can be fraudulently manipulated, leading directors and or investors to believe that the in house accountants/bookkeepers has produced better results than was really the case. Such manipulation can also lead a bank to issue debt to a business that cannot realistically repay it. Another concern is that financial statements are entirely historical in nature, and so can be misleading when used to project the future results of a business.
Speaking with our team will help you understand the need for regular updates on how your business is going. Remember…….your future is our focus