Why do I need a financial statement? is a question that bookkeepers and accountants are asked many times by clients. There are three main reasons why your business needs a financial statement.
As a business owner, financial statements are vital information for you to make business decisions. You need to review more than your bank statements to see if you can afford to invest money back into your business. Having a financial statement will also help you to keep all your information neatly organized for tax time.
Just having a financial statement is not enough! You must make sure that you are reviewing your statements regularly. This will help you to catch mistakes earlier, detect fraud, theft or other illegal activities within your business. Even if you have a bookkeeper or accountant to do your books you still need to be involved and watchful for any discrepancies.
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