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Report Preparation
How Often Do You Need to Prepare a Profit & Loss Statement?
Profit and loss statements are valuable accounting tools and effective partial indicators of financial health. They can show how money comes into a company and how it is leaving through expenses of all kinds. In the case of large corporations, financial disclosure is required on a regular basis through the year. Profit and loss statements can be strategic tools for determining risks and spotting trends related to products and services. They also can help a company manage its taxation strategies.
If you are a sole proprietor, or partner in a small firm, you probably have a pretty good handle on how your company is doing. You may not feel the need to have formal profit and loss statements or to devote resources to producing them and discussing them on the same basis as others might like. Perhaps monthly or quarterly reports are sufficient for your needs with interim partial reports for revenue streams only.
Keep in mind your bank or other lenders and donors, may want to see profit and loss statements on a more frequent regular basis than you feel is necessary. Many uncomfortable decisions, including those involving human resources, may have to be made on the basis of both actual and projected net income.
Tax Anticipation for a profitable business is critical use for profit and loss statements. Most likely you will have to keep records for your payrollfor workers comp and other liability insurances on a quarterly basis. Preparing profit and loss statements more often gives you the advantage of being able to predict the impact on cash flow and available cash in general. They may offer the opportunity to adjust net income to reduce income taxes.
Also consumer patterns may have changed in ways that have nothing to do with you or your business offerings but it may develop a niche where your business can develop more business and a greater cash flow. You may want to have more frequent data to determine whether your marketing strategies need to shift.
If your company or product or service line is new, it may have different needs for disclosure of revenue and expense information than an established company with products and services that have been around for a long time with fairly consistent revenue streams. You will want to see how your marketing and sales strategies are working as a new competitor. Executives with an established company accustomed to only looking at data quarterly may sense the impact from new competition or product or service alternatives, and profit and loss statements can be useful indicators of such trends.
When these situations are around the corner Verduzco Financial and Managment can help you generate reports. We can perform the tedious data entry of your expenses and revenue. The time consuming process of taking receipts, statements and other data to generate reports can fuel procrastination or can affect other operations in your business. Let Verduzco Financial and management take the load off and organize, data and create reports to provide for whatever business needs arrises.
Fill out our contact form below to have one of our bookkeepers set up a free, no obligation, consultation.
If you are a sole proprietor, or partner in a small firm, you probably have a pretty good handle on how your company is doing. You may not feel the need to have formal profit and loss statements or to devote resources to producing them and discussing them on the same basis as others might like. Perhaps monthly or quarterly reports are sufficient for your needs with interim partial reports for revenue streams only.
Keep in mind your bank or other lenders and donors, may want to see profit and loss statements on a more frequent regular basis than you feel is necessary. Many uncomfortable decisions, including those involving human resources, may have to be made on the basis of both actual and projected net income.
Tax Anticipation for a profitable business is critical use for profit and loss statements. Most likely you will have to keep records for your payrollfor workers comp and other liability insurances on a quarterly basis. Preparing profit and loss statements more often gives you the advantage of being able to predict the impact on cash flow and available cash in general. They may offer the opportunity to adjust net income to reduce income taxes.
Also consumer patterns may have changed in ways that have nothing to do with you or your business offerings but it may develop a niche where your business can develop more business and a greater cash flow. You may want to have more frequent data to determine whether your marketing strategies need to shift.
If your company or product or service line is new, it may have different needs for disclosure of revenue and expense information than an established company with products and services that have been around for a long time with fairly consistent revenue streams. You will want to see how your marketing and sales strategies are working as a new competitor. Executives with an established company accustomed to only looking at data quarterly may sense the impact from new competition or product or service alternatives, and profit and loss statements can be useful indicators of such trends.
When these situations are around the corner Verduzco Financial and Managment can help you generate reports. We can perform the tedious data entry of your expenses and revenue. The time consuming process of taking receipts, statements and other data to generate reports can fuel procrastination or can affect other operations in your business. Let Verduzco Financial and management take the load off and organize, data and create reports to provide for whatever business needs arrises.
Fill out our contact form below to have one of our bookkeepers set up a free, no obligation, consultation.
