Creating financial statements using Sage One Accounting is one of the simplest to-do things in small business accounting. With Sage One Accounting perfectly designed for small business businesses and start-up companies, creating financial statements is no more a tedious and tiring process again!
First of all, what the heck are financial statements?
Financial Statement as defined by Business Dictionary is “Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what its current financial position.”
As report card is used by schools to access a student’s academic performance, the financial statement is also used to access the business’ financial performance, profitability and creditworthiness.
The financial statements of a business usually consists of:
- Income Statement/ Profit & Loss Statement: this shows the gross and net profit of a business over a period of time in transacting business activities.
- Balance Sheet: this financial report shows the current assets, liabilities and net worth of the business at a particular time or date.
- Cash flow Statement: this entails the cash inflows and inflows of a business over a period of time as a result of its operating, investing and financial activities.
- Equity Statement: this statement reports the changes in retained earnings or the return on the investor’s capital invested in the operation of the business.
The first two are the most basic financial reports which make up the financial statement of every business-small, medium sized or large company!
Donald Trump, the multi-billion real-estate mogul and the president of the United States of America said in his book, Think Like a Billionaire, “Periodically, I ask my financial department for what I call my financial “small shot.” This report reflects among many other financial data, my cash balances, investments, sales of condominiums units, and so forth. If I didn’t check on it regularly, I would be in a big financial trouble, and I would have no one to blame but myself. You should pull yours together once in a while.”
As rich as Mr. Trump is, if he is so much concerned about his financial reports, how much more should small businesses and Start-up Company’s regularly check on their financial reports?
You’ll have to check on it regularly, so you can run your business well. Creating the financial statements using Sage One Accounting makes it simple in processing these financial reports for your business. If you don’t have Sage One Accounting Program yet, kindly contact Multisoft Solutions Limited to install one for your business!
Once installed, processing the reports is very simple.
On your dashboard, move over to the reports button. The reports button displays reports such as “Profit & Loss Report, Balance Sheet Report, and other vital reports.”
To process your Profit & Loss Report, simply click on the button, enter the dates you want to run the report from and to and then chose the report format (either PDF or CSV Format). Then, there is your report on your lap. The same process goes for the balance sheet. However in this case, you will just have to enter the date of the date for the balance sheet.
Isn’t it so simple? Make the processing of your business financial reports easy by creating financial statements using Sage One Accounting.