Understanding the finances of your business is essential to your business’ health. Financial statements are a summary of position, performance and changes in the financial position of a business.
They are essential for providing information on profitability, expenses and making decisions on investment whether in staff or equipment.
Businesses require four basic financial statements:
- Statement of Financial Position: This statement summarises the financial position of the business. The report provides information on a company's assets, liabilities, and Ownership equity at a given point in time.
- Statement of Profit & Loss: The Profit & Loss statement summarises the company's income, expenses, and profits over a period of time. This is one of the key statements of any business. The Profit & Loss statement includes sales and various expenses incurred when doing business.
- Statement of Changes in Equity: explains the changes of the company's equity throughout the reporting period.
- Statement of cash flows: This is, in our opinion the most important statement for any business; Cash flow is the lifeblood of any business and without it any business will die. The cash flow statement reports on the money flowing through a company. It is important that this statement is produced regularly and at a frequency that suits your business, whether weekly or monthly.
Financial statements can often be complex and confusing for business owners to compile or to understand. At KM Business services we provide accurate financial statements which are understandable, relevant, reliable and comparable. This is all created in a cost-effective manner.
Contact us today to discuss your needs - 0844 884 59 09.
Frequently Asked Questions
- What are financial reporting services?
Financial reporting services involve the preparation and presentation of financial statements that provide a clear view of your business's financial health. These reports typically include balance sheets, income statements, cash flow statements, and other documents that summarise your financial performance over a specific period. Professional financial reporting services help businesses stay compliant with accounting standards, improve transparency, and make informed strategic decisions based on accurate financial data.
- Why is financial reporting important for my business?
Financial reporting is essential for several reasons. It helps you track the financial performance of your business, identify areas for improvement, and make informed decisions. Financial reports are also crucial for stakeholders such as investors, lenders, and regulators, who rely on these documents to assess the health of your business. Regular financial reporting ensures that you’re staying on top of your finances, meeting regulatory requirements, and planning for the future with confidence.
- What financial reports will your financial reporting services provide?
Our financial reporting services include the preparation of the key financial documents that provide insights into your business’s financial standing. These typically include:
- Balance Sheet: A snapshot of your business's assets, liabilities, and equity at a specific point in time.
- Income Statement (Profit & Loss Statement): Shows your revenues, expenses, and profits over a specific period.
- Cash Flow Statement: Tracks the flow of cash into and out of your business.
- Statement of Changes in Equity: Provides details on changes in your company’s equity over time.
These reports are tailored to your business’s needs, ensuring they provide the most relevant financial data for decision-making.
- How can financial reporting services benefit my business?
Financial reporting services offer several key benefits:
- Better financial visibility: Regular reports give you a clear understanding of your business’s financial health.
- Informed decision-making: Accurate financial reports provide data that helps you make strategic decisions, from managing cash flow to identifying areas for cost savings.
- Regulatory compliance: Professional financial reporting ensures that your business adheres to accounting standards and tax regulations, reducing the risk of penalties.
- Attract investors and lenders: Clear, accurate financial statements are essential for securing funding or investment.
By outsourcing financial reporting, you can focus on running your business while we handle the numbers.
- Who needs financial reporting services?
Financial reporting services are essential for any business that wants to maintain clear and accurate financial records. Whether you’re a small business owner, a growing company, or a large enterprise, regular financial reporting is crucial for:
- Tax compliance: Ensuring your business is meeting tax obligations.
- Management and strategic planning: Helping your team make informed decisions.
- Investors and stakeholders: Providing transparency and building trust.
- Securing loans or funding: Providing lenders and investors with the financial data they need to assess your business.
If your business needs to track financial performance, meet regulatory requirements, or present reports to external stakeholders, financial reporting services are a must.
- How often should my business have financial reports prepared?
The frequency of financial reporting depends on your business’s needs. Many businesses opt for quarterly or annual reports, but if you’re managing a rapidly growing business, more frequent reports (e.g., monthly) might be necessary. Regular financial reporting helps you stay on top of cash flow, track performance, and make timely decisions. We can customise the reporting schedule to fit your business cycle and ensure you're always prepared.
- Can your financial reporting services help with tax preparation?
Yes, our financial reporting services are an essential part of tax preparation. By keeping your financial reports up to date, we ensure that your business is prepared for tax season. These reports provide a detailed record of your income, expenses, and profits, making it easier for your accountant or tax advisor to file your taxes accurately. Regular financial reporting also helps ensure that you're compliant with tax laws and can reduce the risk of errors during tax filing.
- How do I get started with financial reporting services?
Getting started is simple! Just reach out to us through our contact form or call us to schedule a consultation. We’ll discuss your business's financial reporting needs and create a customised plan that fits your requirements. Whether you need monthly financial reports or annual statements, we’ll handle everything from preparation to presentation, ensuring your business stays on track financially.
- Are your financial reporting services suitable for small businesses?
Absolutely! Our financial reporting services are ideal for businesses of all sizes, including small businesses. Regular financial reporting is crucial for small business owners who need to keep track of performance, manage cash flow, and stay compliant with regulations. We offer flexible services that can scale with your business, whether you need basic reports or comprehensive financial analysis. With our help, small businesses can benefit from professional reporting without the need for an in-house accounting team.
- What makes KMBS’s financial reporting services different from others?
At KMBS, we offer a personalised approach to financial reporting. We take the time to understand your business and tailor our reports to meet your specific needs. Unlike one-size-fits-all solutions, our services provide you with clear, concise, and actionable insights into your financial health. Our team of experts ensures that your reports are accurate, compliant, and delivered on time, so you can focus on growing your business with confidence.