A personal financial statement (PFS) is a document that credit applicants must prepare and submit to prospective lenders, investors, partners, and other entities. The personal financial statement provides a snapshot of an individual’s financial position andnet worthat a particular point; it is als...
When it comes to determining a company's financial health, an income statement is the most important document in the financial statements. It consists of data pertaining to a business' income and expense, and the net profit in two formats - the single-step, and the multi-step income statemen...
The ins and outs of income statementsWhat is an income statement and why is it important?The four essential aspects of an income statementViewing an income statement in actionHow to work with a monthly, quarterly, or annual income statement templateAnalyzing your income statementKeep track of all...
A personal financial system can also involve generational wealth transfer, taking advantage of tax planning opportunities, filing tax returns, using credit cards, and buying, selling, and managing assets. Personal finance is always tailored to one’s specific needs in the short, medium, or long te...
Why a Profit and Loss Statement is So Important for a Small Business Every business, big or small, thrives on accurate financial information. The Profit and Loss (P&L) statement, often termed the income statement, serves as a comprehensive financial snapshot detailing a business’s financial ac...
3. A statement of shareholder equity can help you get through financial difficulties. The statement of shareholder equity is essential in trying times. It will reveal whether you didn’t make enough to sustain operations or whether you have enough equity in the business to get through a downturn...
A statement of account is the documentation of transactions between your small business and each client within a specific time frame. Learn more here.
Here are some great reasons why preparing an income statement is such a crucial task in every organization regardless size: Assist in better decision making- Reading the income statement enables the business owners to be aware of the current financial footing of the company. With the accurate figu...
A profit and loss statement is a financial report that shows how much your business has spent and earned over a specified time. It also shows whether you’ve made a profit or a loss over that time – hence the name. A profit and loss statement might also be called a P&L or an inco...
What is an invoice used for? Maybe you have not had to use an invoice before and still managed to receive payment successfully. However, as your business grows, that may not be the case. Besides helping you get paid, an invoice represents who you are as a company. It tells a story ab...