If we are to look and consider “financial statements” from a professional and experienced accountant’s perspective, the parameters that it covers is way more complex than how it sounds.
Not only is it intricate, since it deals with a considerable amount of numbers, but also is crucial in a company finance.
In the true sense of words, it is essential as it accurately defines the business performance and financial position of a company.
It presents significant financial information that investors and financial analysts will consider to evaluate the company’s financial health.
By comparing previous and present financial statements, experts will be able to assess the status of a company’s business – whether it is progressive or regressive.
The idea of it is easy to comprehend, I know, but the intricate part comes in when we have to indepthly grasp the very core of financial statements and discover the different sections that comprise it.
Here are the different sections of a Financial Statement:
– a consolidated financial report that shows company’s assets, liabilities and owner’s equity.
The technical theory behind a Balance sheet is that Total Assets is a combination of debts (Liabilities) and equity (or Owners capitalization).
Thus, Asset (A) = Liabilities(L) + Equity (E).
At any point in time, you can evaluate the financial standing of the company.
– a consolidated financial report that shows company’s income and expenses.
Also known as profit and loss statement, it shows the Revenue (Sales), Expenses and its net result.
The net result is Profit or Loss.
Thus the formula Net Profit or Loss is equal to Sales less Expenses.
Income statement can be generated over a period of time, meaning making it would require a start date and end date.
Unlike the Balance Sheet, you will only need a certain period or specific date.
Both Balance Sheet and Income Statement will compliment each other to give its readers an overview of the company’s financial health.
– a financial report that shows company’s cash movement into operating, investing and financing activities.
This report supplements the Balance Sheet and Income Statement.
It shows the Cash In and Cash Out in the company’s financial records and transactions.
Completing the data that comprises the statement report of a company’s financial statements is too good to be true until you realize how tedious the process will be if you will be doing it manually.
Well, manual process is out of the question since there are many online accounting software out there.
But, there lies a question.
Are you confident enough to choose the perfect online accounting software that is best for your business?
If your answer is no, then worry no more!
There is a free accounting software for small business that is cloud-based, capable of producing the financial statements required without having to hire many accountants to do the job.
This free accounting software is also perfect for small businesses.
Save up some money on fees and resources and let EasyFIS do the accounting works for you!
Why is EasyFIS the one that is perfect for you?
Financial statements are easily created
– Even for the first time, you can easily create financial statements with the push of a button.
If you are doing monthly accounting processing even for the first financial statement, you can create a financial statement just by pressing the button to create a financial statement.
– If you don’t understand something, you can solve it immediately.
Rest assured that EasyFIS has well-developed support system.
– It is guaranteed that all of your data are secured.
Data is encrypted and automatically backed up to the cloud.
It also supports various document creation.
Various documents such as consumption tax returns and account breakdowns are automatically created from journal data.
Reduces the hassle of closing accounts.
EasyFIS is a free cloud-based accounting software that provides a highly accurate and real time view of your financial statements.
EasyFIS also offers a free plan that surely is cost-effective since it will cost you less upon deployment, as well as its maintenance.
Here are the key features of EasyFIS free accounting:
- Cost efficient and low maintenance
- Provides income and expense reports
- Provides financial statements
- Easily accessible anywhere and anytime
- Improved customer service
With EasyFIS, you are guaranteed an end-to-end accounting software that is cloud-based and accessible with a multi-currency system when you need one.
A Software-as-a-service (SAAS) , Sales, Inventory and Accounting System designed for micro, small and medium enterprises (MSMEs), EasyFIS is practically Accounting that Works!
For more inquiries, contact us now by filing-in this contact form.