Writing down every penny we used was continuous advice from our mothers; it turns out that is what an assistance of taxation for a business would do.
Write down each and everything you did when you established the business, every penny, every action, every purchase needs to go on the paper.
That all together makes your financial statement. It mainly focuses on business financial activity.
Financial statements are an essential asset to the business that helps you get investors and loans from the bank; here are a few tips on how these can be of assistance:
The balance sheet is the crux of everything you own and have. All the cash you have in your hand in the bank, the value of all the equipment you own, also your assets.
They all go on the left side of the page; just start listing them.
What goes on your right side of the page is the list of your liabilities, such as the accounts payable, credit card balances, bank loans, and any other money your company owes.
For the owner equity, add all the assets and liabilities. Then subtract your liabilities from your assets. You might need some help from the assistance taxation for business department.
According to a suggestion for getting assistance regarding taxation for your business, the income sheet is like a balance sheet nut; instead, it shows the crux of:
- Incomes of x periods
- Loss in x periods
Start by writing all the numbers that come under these categories; they might cover money spent on raw materials, advertisement, payrolls, utilities, repairs, equipment, utilities, and even rent.
In the end, subtract the total from your income.
STATEMENT OF CASH FLOW
In easy words, the statement of cash flow is the footprint of your inflow and outflow of money.
It needs to clearly show the money you spent and earned in that specific time; from the point of view of assistance taxation individual for your business, it is categorized into three criteria;
- Operating activities
- Investing activities
- Financing activities
What is included in a financial statement?
Altogether the financial statement must have all of the following as advised by tax officer:
- Assets: Everything that you own, write down its value in figures.
- Comprehensive income: Annual and monthly income, every transaction you made, and every check you added.
- Distributions to owners: transfers, liabilities, services, employees. List everything you can think of.
- Equity: It is the ownership interest; assets subtracted from liabilities give you equity.
- Expenses: Outflow and inflow of cash from banks and hand. List each and everything.
- Gains: Increase in equity, how and why?
- Investments by owners
Are There Apps For This?
Of course! There are many, many apps for finance. So many in fact, it’s hard to recommend one or two because it’s beyond the scope of this article. It could even be worth making your own app or outsource it to a fintech app development service.
A financial statement is an important part of business development and business stability.
It helps save a few bucks and keeps your legal work in order, so the assistance taxation advises it for business firms and officials.
In other words, it is an asset: https:/www.taxproff.com/business-taxation-assistance/