The Importance of Annual Financial Statements For Small Businesses
One of the most important aspects of accounting for small businesses is producing annual financial statements. But what types of financial statements should you produce and why? Types of financial statements Invoices Invoices record incoming and outgoing financial transactions between you, your clients, and other third parties. These details are essential for accurate financial statements and efficient bookkeeping practices. Income reports: Income reports are statements created from invoices. They give a representation of your business' ability to make money over a fixed period, usually monthly or quarterly and allow you to see just where your money is going.