Financial Statements

financial statments

Income Statement

An income statement or profit and loss statement adds an itemized list of all your revenues/income and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.

An income statement allows you to…

  • Track revenues and expenses so that you can determine the operating performance of your business.
  • Determine what areas of your business is over-budget or under-budget.
  • Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.
  • Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
  • Determine your income tax liability.

Balance Sheet
A balance sheet gives you a snapshot of your business’ financial condition at a specific moment in time.
A balance sheet helps you…

  • Quickly get a handle on the financial strength and capabilities of your business.
  • Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively.
  • Determine if your business is in a position to expand.
  • Determine if you need to take immediate steps to bolster cash reserves.
  • Determine if your business has been slowing down payables to forestall an inevitable cash shortage.

Cash Flow

In today’s tight credit markets, your future financial condition and cash flow needs take on great importance. With information gathered and translated by J&R you can anticipate your future operating results and cash positions. This allows you to identify potential issues and take appropriate action sooner, rather than later.

A business can be profitable and still run into trouble due to cash flow issues. We can forecast and evaluate your company’s financial condition, estimate financing requirements, and track cash-flow sources and uses. You can improve your company’s liquidity, reduce costs and increase profitability through good cash management. Growing companies need to know how to anticipate future cash needs. We help you understand the sources and uses of your cash flow so you can track and project this vital part of your business.
Balance sheets, income statements along with cash flow statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

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Initial consultation is free to learn more about J&R Accounting Group’s wide range of services and how we can add value to your business, contact us at toll free 855-270-1120 or contact@jracct.com