“I need help with financial statements”
To many small business owners, financial reporting can feel tedious and unwarranted, but it’s something that all companies must do, and it’s actually key to small business success!
However, financial reporting is not everyone’s strong suit. That’s why our accountants at Rising Tide Financial Services are here to help take the hassle out of reporting and provide you with the relevant financial statements to track your business. Here are our best tips for getting started:
Recognize the benefits
Checking in on your accounts regularly can help you to understand your businesses’ past performance. This, in turn, helps you to identify issues, make better business decisions, track the financial health of your company, and most importantly help you set goals so that you can succeed.
Financial statements can also help you avoid sticky situations, like becoming insolvent or other issues with things such as tax returns.
Develop a record keeping process
By law, if you own a small business you must keep financial records that correctly record and explain its transactions, financial position and performance. Keeping these records enables true financial statements to be prepared and checked.
Not sure what records to keep? You’ll need to keep things such as invoices, receipts, cheques, working papers and more. Essentially, keep all documents that explain why your financial statements are the way they are – and note that these have to be kept for seven years.
Understand your legal obligations
Although financial statements and records must be kept for seven years, not all companies are required to lodge them with ASIC. If your business has a substantial amount of money involved, the public has invested funds within it, or it is a charity you will generally have to lodge the reports.
However, disclosing entities, public companies, companies limited by guarantee, large proprietary companies, registered managed investment schemes and foreign controlled small proprietary companies must lodge yearly financial reports.
Seek expert advice
As businesses grow, financial statements can become more complex and even more important to track, so it is a great idea to seek expert advice if your statements are getting a little hard to handle. Any business can and should seek financial reporting advice as it can be mighty difficult to know what you need to track, how to track it and what it all means!
At Rising Tide, your business goals are important. We’re here to help you put together an effective financial plan to support you on your way to achieving success.