How to Write a Business Plan for a Small Business

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How to Write a Financial Report

financial report is a statement of the financial health of a company or organization. Most financial reports are prepared quarterly and annually, although some businesses do them every month. Depending on the type of organization or company, financial reports are reviewed and analyzed by Boards of Directors, investors, financial analysts and government agencies. Write a financial report that includes an income statement, balance sheet and a cash flow statement.

Decide on the period of time your financial report will cover. Financial reports are typically done quarterly or annually.

Review your ledgers to make sure everything is up to date and properly recorded. This will prevent mistakes and adjustments to financial reports later.

Prepare the balance sheet. A balance sheet shows the company’s assets (what it owns) and liabilities (what it owes).
List assets on the left side of the balance sheet. These will include cash in your bank accounts and any accounts receivable.
List liabilities on the right side of the balance sheet. These will include your accounts payable, mortgages and other loan payments.
Include equity with liabilities on the balance sheet. Equity is also called capital or net worth. This is the amount of money the company would have left if all its assets were sold and liabilities paid off.
Add up the totals of your assets and liabilities. For the finances to balance, the assets must equal the liabilities and equity.4Prepare the income statement. The income statement shows how much money a company made during the time period of the financial report, as well as the costs and expenses associated with that income.
Add up the total gross revenues or sales.
Subtract the returns or allowances, which is money you do not expect to collect on certain sales. This would cover discounts or returned items. This will give you the net revenue.
Record all operating expenses and costs you must pay to do business. Subtract these costs from your net revenue, and you will have your gross profit.
List general and administrative expenses such as salaries, rent and utilities, dues and depreciation. Depreciation considers the wear and tear of certain assets such as office machines and equipment. The total will be your net profit.

Prepare the cash flow statement. This tracks how money came in and left the accounts of the company. It uses information from the balance sheet and income statement.
List the operating activities of the company to reconcile the net income with the amount of cash the company used for its operating activities.
Record investment activities. This would show any money that came in from the sales or profits of any investment portfolios the company owns.
Include financing activities. This includes cash available from the sale of stocks and bonds or paying off bank loans.

Include a narrative or footnotes. Financial reports often include a written summary or footnotes which explain accounting practices and procedures used by the company, information on taxes paid or deferred by the company and an overview of financial health.

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Great Business Videos for Great Entrepreneurs - SelfLearnEN says:

How to Write a Business Plan for a Small Business

Azmy selflearn says:

How to Write a Business Plan for a Small Business

Shanthisree Sreedhar says:

Thankewwww!!! It’s really useful 🙂 

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