Preparing your business’s financial statements audit
There are three major financial statements that every business should be completing when nearing the annual financial year-end: income statements, cash flow statements and balance sheets. While income statements measure profit or loss and cash flow statements measure a business’s liquidity, balance sheets show an entire snapshot of the financial health of a business at a specific time period.These three financial statements are all equally important when conducting annual reports and show a different angle of the company’s financial state. The key to creating successful annual reports from your financial statements is pairing your knowledge of accounting with an accounting software package such as QuickBooks.
QuickBooks Accounting Software is a leading accounting system designed for small to large businesses which caters to their exact needs from calculating sums to managing tax forms. This way, you can rest assured that when you close your books at the end of the financial year, the financial health of your business is in order. And if ever a question arises that requires you to review the previous year’s accounting financial statements, you can always choose the option of leaving your books open for consulting at a later stage. QuickBooks is one of the only software programs that allows you to conduct full summaries of your financial year-end and which doesn’t require you to close your books. An accounting software system that is tailored to meet your exact needs, what more could you ask for?
Why you should use QuickBooks Accounting Software for your financial statements
When you use QuickBooks Accounting Software to prepare your business’s financial statements, you’re automatically saving time because the program assists you in every step. QuickBooks utilises intelligent software that incorporates into your accounts or payroll department and which is very easy to use. By reducing the time spent on creating annual financial statements, business owners, auditors and accountants will have more time available to review important year-end documents, and to ensure accuracy, thus leading to an increase in productivity.
Once installed, QuickBooks performs certain year-end adjustments to ensure your financial statements remain accurate at any time of the year. These include:
- Altering your income and expense accounts at the start of the new financial year so that you can start the new year with a zero net income.
- Incorporating your profit into your balance sheet for the new financial year, so as to display your net income.
- Increasing your Retained Earnings equity account with the net income of the previous year and decreasing the equity account accordingly to balance out the books. Thus QuickBooks ensures that your new financial year starts off successfully.
Trust QuickBooks to take care of your business’s financial year-end documents
Having to deal with an endless supply of paperwork is time-consuming and leaves room for common errors when preparing accounting financial statements. By using online accounting software programs such as QuickBooks SimpleStart, QuickBooks Pro or QuickBooks Premier your financial statement worries will be a concern of the past. Learn more about the key features each accounting software package has to offer your business, or compare products to find the ideal package for you.