A Financial Statement for Small Business Template is considering a suitable choice for businesses that are less than two years old and have low revenue generation, but they have realized the potential of starting their own business. And if you are not in this category, then you have the potential to do well with a financial statement for small business.
There are many advantages to creating a financial statement for a small business because it helps in guiding your business’s growth. But you need to be wary of the possible pitfalls before you create it so that it can help you make a wise decision.
You must realize that what works for your business could end up working for your competitors too. That is why you must start with the basics and begin with the basics. For instance, you can include the following in your financial statement for small business template.
Profit and Loss Statement – This gives you a clear picture of your business’ performance in a year. And it is an essential element of any business, whether big or small. This statement can be done either monthly or annually.
Inventory Report – This section will provide you with details about your inventories as well as their movement. If you own a retail store, this report is especially important since you will be listing the inventory on your income statement for the year.
Income Statement – This section will give you information about the cash flow generated by your business. This report will include details such as income from sales, interest income, and dividend income. It is also possible to add other types of income such as investment, royalties, and rent.
Lastly, the last sections that you can include are Finances and Financial Statement for Stockholders. Thisis needed to help the tax authorities understand how you managed your business.
These are just some of the necessary sections that you need to include in your financial statement for small business. You need to be aware of the potential pitfalls and how to avoid them in order to be successful in your business.