An income statement, also known as a profit and loss statement (P&L), is an itemized list of all your business revenues and expenses. The expenses are subtracted from the revenues to determine a profit or loss for a specific period.
An income statement helps you track revenues and expenses in an organized manner so you can see the operating performance of your business. It also helps you determine areas in which your business is over/under budget, so you can make timely adjustments to affect your bottom line … your P&L.
A balance sheet gives you an overall financial view of your business at a specific moment in time. A standard balance sheet has three parts: assets, liabilities and owner’s equity, with assets equaling liabilities plus equity (capital). Typical assets would include cash balances and accounts receivable. Liabilities would be accounts payable and loan balances. The capital (or equity) section would include your original investment in the business and any retained earnings (net profit or loss) you’ve left in the business accounts.
The balance sheet and the income statement are the basic financial reports needed to provide information
General Ledger Audit
The general ledger is the hub of your company’s financial records. These records form the central “books” in your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your financial reporting.
Bay Wide Tax Service staff can review your general ledger system to look for discrepancies such as double billings or unrecorded payments and we can assist with journal entries to fix any errors that are discovered.
Bay Wide Tax Service staff are always available to assist clients in interpreting the financial information we provide. There is no added fee for this service. Please feel free to contact us for an in-depth conversation about your business’ financial documents.