An Income Statement, also known as a Profit and Loss Statement, adds an itemized list of all of your revenues 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 revenue and expenses so that you can determine the performance of your business.
- Identify specific items that are causing unexpected expenditures.
- Determine what areas of your expenses differ from your budget.
- Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
- Determine your income tax liability.
A Balance Sheet gives you a “snapshot” of your business’ financial condition on a specific date. It covers its assets, liabilities and shareholder’s equity. A Balance Sheet allows you to:
- Determine how much your company owns (assets).
- Determine how much your company owes (liabilities).
- Quickly get an idea of the financial strength and capabilities of your business.
- Determine if your business is in a position to expand or if you need to take steps to increase cash reserves.
Balance Sheets and Income 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. Systemz Bookkeeping ensures that these are accurate and organized properly.
Maintain a Clean General Ledger
The general ledger is at the center of your company’s financial records. These records make up the “books” of your system. Every transaction flows through the general ledger, and a problem with your general ledger throws off all your books.
Systemz Bookkeeping reviews your general ledger every month and hunts down and corrects any discrepancies such as double billings or unrecorded payments.
Liaison With Your Tax Professional
Systemz Bookkeeping will work with your tax professional for monthly, quarterly, or annual needs in order for them to prepare your taxes.