Income statements, balance sheets and accounting systems

Keeping accurate financial records is an important element in running a business because if your finances aren’t in order, the likelihood of your business succeeding is minimal. Two of the most important kinds of financial records that need to be kept are income statements and balance sheets. These financial records can help you to keep a close eye on your business’s cash flow and ensure that spending doesn’t exceed your income.

Accounting systems offer an effective means to keep your accounting records in impeccable order and provide you with the financial knowledge necessary to run your business efficiently. QuickBooks offers a selection of accounting systems that are easy to use. Even entrepreneurs and business owners with little accountancy experience will be able to learn how to use our accounting systems quickly.

Furthermore, QuickBooks accounting programs are affordable and because business owners are often able to use them to keep their own financial records, choosing to use financial software over employing an accountant can save you a significant amount of money.

Peruse our range of financial software now to find the package that best suits the requirements of your business. Or continue reading to learn more about how QuickBooks accounting programs can help you to create detailed income statements and balance sheets.

Recording your income with QuickBooks accounting systems

Income statements outline your business’s performance over the year, showing your company’s net profit, income and expenses over the 12 month period. In order to be able to create an accurate income statement, it is imperative to keep records diligently throughout the year. If you wait until shortly before your income statements are due, you will find it difficult to collate and interpret the stack of receipts and invoices that have piled up.

Accounting systems make it easy to input your income and expenses as they occur. By adding all income received and expenses paid to your accounting system regularly, you can rest assured that at the end of the year your income statement will be accurate and comprehensive. You and your investors will be able to have a clear overview of your revenue over the year in question.

Using accounting systems to create a balance sheet

Balance sheets differ from income statements in that they provide an overall overview of your business’s financial situation. It takes into account all aspects that are financially relevant to the immediate value of your business, including outstanding accounts, value of property owned, debts and liabilities.

Accounting systems from QuickBooks can help you to draw up a balance sheet and ensure that each section comprises the correct calculations. There are three sections to a balance sheet: assets, liabilities and equity.

  • The assets section includes information such as cash, investments, property, equipment and accounts receivable.
  • The liabilities section pertains to all of your business’s debt and liabilities.
  • The equity section depicts your business’s book value, which is calculated by subtracting liabilities from assets.

Choose QuickBooks accounting systems for efficient bookkeeping

Running a business is tough and time consuming and much of the time that you spend keeping track of your company’s finances could be used growing your business. Accounting systems from QuickBooks offer quick and effective solutions for recording your finances both accurately and systematically.

Browse our selection of accounting systems and financial software, including QuickBooks Pro, QuickBooks SimpleStart and QuickBooks Premier.