Customer statement of account template, All businesses, whether private, public, or non-profit, have to prepare financial statements in their performance to provide fiscal accountability and accuracy for their stakeholders and individuals with an interest in the company. These statements enable management to make business decisions, enable creditors to assess loan programs, and supply people with information to make investment choices.
A corporation’s income statement can also be known as the P&L (Profit and Loss) and Record of Operations. The income statement demonstrates how revenue earned (the top line) in the sales of merchandise and services before expenses are taken out, is transformed into the net income (bottom line), the end result after revenue and expenses are accounted for. The earnings statement records whether the firm made a profit or not through a documented period of time.
Compiled financial statements offer lowest level of assurance. One of the principal reasons these are used instead of other announcements is to the timely launch of financial information regarding a company. Compiled statements really are a presentation of different financial reports and documentation, which is the representation of owners or management of an organization. Compilation standards enable the company to omit note disclosures provided that there is no intent to mislead the users. Here is the only kind of financial statement that allows omitted disclosures.
The statement of cash flows demonstrates how fluctuations in the balance sheet and income statement impact cash and cash equivalents. It also demonstrates working, investing, and financing activities. The statement of cash flows aids investors and management ascertain the short term viability of a business, specifically their ability to cover costs. As a CPA I analyze these 3 fiscal statements along with their supporting documentation given by the company and assesses the general accounting principles used. From this info I then create an audited financial statement which will incorporate an opinion, either qualified or unqualified, regarding the nature of the fiscal records.
Occasionally an opinion will not be given in an audited financial statement. This might be a result of the fact that there were trivial documents available to properly prepare the audit, or else there were problems that have to be addressed before assessing the accuracy of the fiscal documents. A deficiency of opinion generally suggests that a company should increase their accounting practices so they can meet the demands of the US GAAP (Generally Accepted Accounting Principles).