Financial statements are one important note for entrepreneurs, both for large and small scale businesses. For large companies, financial statements are not a complicated thing to do. In contrast to small scale businesses that consider financial statements not something important. This is due to the large number of small scale entrepreneurs who do not understand how to make simple financial statements for small companies. That’s why we highly recommend for small business owners to hire the best Expert Xero Services.
A large-scale company, financial statements have been arranged neatly and in detail. The report has been made by an accountant who does have extensive knowledge and knowledge about financial statements. Because financial statements are the result of a fairly complicated accounting process for ordinary people. In large companies, they already have resources that are able to make neat and detailed financial reports.
Different in small scale companies. Generally, small companies are owned by someone who does not understand accounting. Sometimes entrepreneurs ignore the importance of the accounting process for the businesses they own. In fact, if the financial statements are used according to their function, they become a source of information for the business that is being run. Even financial statements will be one of the main sources for business owners to find out the amount of profit they actually get.
Before starting to make a small company financial statement, you as an entrepreneur must prepare several things that must be prepared. These things will be very related to your business’s financial records in a certain period.
For example, if you want to make financial statements for one month accounting period, then you must prepare financial records for one month. These records will be the main source in making financial reports that will be made. Some notes that must be prepared:
Goods Sales Note
Record of costs
Business Cash Notes