Here’s what businesses owner too often get wrong on financial statements

Financial reporting results in a financial statement, which can indicate  whether your company is bringing in a profit or heading towards  trouble.

You’re not including comparative data.

Including prior-year, prior-month, or budgeted amounts makes it easier to see if actual amounts meet expectations.

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You’re not reflecting reality.

Financial statements should always reflect the true financial  condition of a business. Consider having your financial statements  reviewed by a third party to identify inaccuracies.

You’re not revising procedures to reduce discrepancies.

If you identify an error or discrepancy in your financial statements, take the time to revise your accounting procedures.

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Financial statements are only beneficial if they’re accurate. Don’t  generate a financial statement just for the sake of having one.

You’re not auditing your financial statements.


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