No matter the nature of your business, you will always have to keep accurate financial records over the years.
However, some businesses in the early stages of life, may not be able to afford the hiring process of even one full-time accountant. Unfortunately, in these situations, bookkeeping is left in inexperienced hands or falls to the wayside completely.
At OSMEAC Solutions, we believe that every business should have the opportunity to keep its financial reporting accurate without having to hire a full-time financial team.
Let’s dig deeper into the different types of financial reporting a company will face, why accurate records matter, and how contract financial solutions can keep your company profitable on a budget.
Different Types of Financial Statements
Accurate financial reporting paints a big picture view of how a business handles its finances and how it is poised to accomplish its future goals.
While it may seem like printing out bank statements and accomplishing some standard bookkeeping can get the job done, the truth is there are several types of financial statements that make up accurate financial reports.
Income Statement
Your company’s income statement shows the profits and losses of a business over a specified period of time. From analyzing expenses to revenue, and profits, an accurate income statement during a financial analysis is essential because it lays the foundation for what your business’s current “bottom line” is.
Balance Sheet
Your company’s assets and liabilities are bound to shift over a given time period. A balance sheet shows these numbers from any given period of time.
Cash Flow Statement
A business’s cash flow statement is a straightforward document that shows the funds moving in and out of a business during a given period of time. The cash flow statement is typically where a business looks when it’s ready to make larger decisions or pay off some past debts.
How Does Excellent Financial Reporting Impact a Business?
It should be clear that accurate financial reporting is necessary for any business to keep tabs on what their financial status is at a given time. However, accurate financial reporting does so much more than serve as an extensive status report.
Here’s a closer look at different ways financial reporting can impact a business in the long term.
Excellent Debt Management
In any business debt is something that every owner wants to avoid. However, debt is inevitable, and failing to have a clear picture of what a business owes won’t allow for adequate debt management solutions.
Financial reporting shows business owners exactly what they owe and prevents owners from turning a blind eye and driving a company into bankruptcy due to overwhelming, unmanageable debt.
Better Decisions for Your Business
Strategic decisions for your business should never be made without complete knowledge of a business’s financial standing. Accurate financial reports allow for quick access to essential financial information and swift, but not reckless decisions for a business’s future.
Assistance When Credit is Needed
When a business reaches out to a financial institution for credit to finance future ventures like an expansion or new hires, these institutions will need an explicit feel for the borrowing business’s ability to pay back a large loan.
Therefore, having a professionally tailored balance sheet is essential to prove to a lender that your business has much more than a great credit score to guarantee timely payments on a loan, credit card, or credited vendor services.
Simplified Taxes
Accurate financial reporting helps reduce the risk of error when tax season rolls around. Efficient analysis and reporting allow the IRS to easily account for a company’s tax income and make completing annual tax returns for a business go much smoother.
Why Push for Contract Financial Reporting Services?
Sometimes hiring a full-time accountant isn’t in the cards for a business. Working with contract accountants that are paid by the job helps fill the accounting void without leaving any important financial decisions to chance.
At OSMEAC Solutions our contract financial reporting services help fuel the million-dollar decisions that can help a business meet its goals. The best part about working with our contract services is that we aren’t on your payroll. You order our services when you need them, and our accountants will bring quality solutions and results to your company with every project we accept.
Perfect Your Business’s Financial Reporting With OSMEAC Solutions
If you are a business owner that needs assistance with accurate financial reporting but isn’t prepared to hire a full-time team, OSMEAC Solutions can help. We are a group of financial experts that provide remote, contract financial services to businesses across the nation.
Whether you need financial reporting services, tax services, or even a fractional CFO, OSMEAC solutions is prepared to step in and help when it matters most.
Contact us today to learn more about our services and schedule a consultation with a member of our team.
