Preparation Of Financial Statement Service Details
A financial statement is a formal record of the financial activities and position of a business, individual, or entity. It's a key component of financial reporting and is used by stakeholders, such as investors, creditors, and management, to make informed decisions.
Key Components of financial statement
Balance Sheet: Shows the company's assets, liabilities, and shareholders' equity at a specific point in time.
Income Statement: Also known as the Profit and Loss Statement, it shows the company’s revenues, expenses, and profits over a period.
Cash Flow Statement: Details the inflows and outflows of cash within the company over a period.
Statement of Changes in Equity: Reflects changes in the company’s equity during a specific period.
Purpose
Decision making
Performance measurement
Compliance
Financial Planning
Components of Financial statement are
Assets: What the business owns, such as cash, inventory, and property.
Liabilities: What the business owes, such as loans and payables.
Equity: The owners’ interest in the business.
Revenues: The income earned from business operations.
Expenses: The costs incurred in running the business.
Net Income: The profit or loss after all expenses have been deducted from revenues.
Steps involve in preparation of financials statements
Gathering all the information
Record the transaction
Pass Adjustment entries
Clear all the suspense balances
Prepare trial balance
After preparation of trial balance Balance sheet, Income Statement, CFS, SOIE is prepared
Review & adjust any amount if required
Finalize and approve
Time taken to complete this task
Approx 1 week is required otherwise time will be decided as per the transaction and all other records.
Why Choose HireYourCA?
Why Choose HireYourCA?
There are several reasons why HireYourCA stands out as your go-to partner for business registrations and compliance:
Experienced and Qualified Team: Our CAs possess extensive knowledge and expertise.
Seamless Service: We handle the entire process, keeping you informed at every step.
Cost-Effective Solutions: Competitive pricing ensures value for your money.
Client-Centric Approach: We prioritize your needs and offer personalized guidance.
Technology-Driven Platform: Our user-friendly online platform enables easy tracking and access to documents.
Transparency and Trust: We maintain complete transparency and adhere to the highest ethical standards.
Eligibility
Every registered entity must prepare financial statements annually.
These financials are for reporting to the Registrar of Companies (ROC).
Financial statements are also used for auditing purposes.
Annual preparation ensures compliance and transparency in financial reporting.
Documents Required for Preparation of Financial Statement
Required Documents
Invoices and Receipts
Sales and Purchase invoices
Debit and Credit notes
Bank Statements.
Transaction Records
Previous Financial Statements
Adjustment Entries
Benefits Of Getting Preparation Of Financial Statement
Helps in Decision Making
Helps to measure the financial Performance of Company
Help to do Proper Financial Planning
Offers a comprehensive view of the financial health and performance of the entity.
Enhances transparency and trust among stakeholders, including investors, creditors, and regulatory bodies.
FAQs
Financial statements are formal records that provide a comprehensive overview of an organization's financial performance and position. They include key reports such as the balance sheet, income statement, cash flow statement, and statement of changes in equity
Typically, financial statements are prepared annually, but some companies may prepare them quarterly or monthly for internal reporting purposes.
Financial statements are usually prepared by the company's accounting department or external auditors
Auditors review and verify the accuracy of financial statements to ensure they are free from material misstatements and comply with accounting standards.
Yes, financial statements can be revised if errors or omissions are discovered. The revision process involves correcting the errors and reissuing the statements.
