You need records to prepare accurate financial statements. These include income (profit and loss) statements, cash flow statements, and balance sheets. These statements can help you in dealing with your bank or creditors and help you to manage your business.
Proper financial statements require journal entries of all your assets, liabilities, revenues, and expenses. The checkbook part is easy, but the asset entries are complicated. Best to have an accountant do that.
Rule Accounting is ready and available to assist you in preparing your financial statements. Most banks will work with you to prepare the financial information they want to see. To really impress them, have your financial statements professionally prepared.
Of course, the main reason to prepare financial statements is to protect your business. Comparing your companies historical financial statements will show you important trends in your business.
Remember, accurate financial statements are for your benefit.
Brett Bickham, 3/12/19
Rule Accounting
Clifton, TX