Financial statements can actually become a core in a business. You can see whether a business is successful or not from its financial statements. Even the success of target achievement can be seen from the financial statements. If until now your financial statements still seem messy, you have to reduce it and create a structured, organized, and clear financial statements.
In this article, you can find out how to maximize financial statements. A business without good financial statements as well as a football team without tactical knowledge. The team can still walk, but the game cannot be effective and will eventually be destroyed in the final moments. If you’re searching the good accounting and bookkeeping services provider, you can go through Inter-gration CPA.
Here are four tips you can apply to maximize your financial statements
- Choose an Accrual System for your Financial Statement
There are two accounting systems that you can apply in your business. First there is a system of cash accounting and secondly, there is an accrual accounting system. Cash is the most commonly used accounting system for most people because it is easy to implement. This cash account system will record all incoming and outgoing transactions.
Meanwhile, the accrual accounting system also records all cash receipts and expenditures, but there is a record of the amount of debt and accounts receivable in the business. Thus, accrual accounting can provide a more accurate picture of the actual financial condition due to the inclusion of the debt amount.
- Record All Expenses and Entries
The next tip is to record all expenses and income. Usually, business owners or SMEs are very lazy to record in detail. There are even some business owners who just remember every transaction. The result? Monthly and even annual financial reports are very messy. You do not want that to happen, do you? Therefore, make it a habit to record in detail. Starting from expense to income should always be recorded. To facilitate the work, you can use software such as Sleek Accounting. Through this software, you no longer need to manually record financial statements, all are available automatically.
- Describe Spending and Income in Detail
Have you ever seen a report with the “Pay Monthly All Employees Monthly” transaction type? Try now to get used to writing all the information in detail. For example, replace “Pay Monthly Salary of All Employees” with “Paying Employee Salary a Month of September 2017”. That way, you can see the report clearly. It will also help you to be more careful in doing the financial recording. So, when later on you need to check your expenses or income, you can know the details clearly without the need to worry about guessing.
- Obey Deadline
The last way you can do is to obey the deadline. Usually, this will often happen when you do not have people accounting alone, so you often missed in making reports. In fact, this financial report should be done every day, recorded every month, and do cover books every year. To comply with this deadline will also affect the targets that you will achieve. Short-term and long-term targets will be closely related to your financial statements on time or not.