Most small business owners have limited time and experience in recording and managing their financial documentation. They are too busy serving customers, managing employees, and overseeing day-to-day operations to worry about their financial records and documents.

Requesting professional financial services will take the burden of producing financial statements off your shoulders. We can prepare accurate, reliable financial statements to ensure you understand your company’s cash flow, debt, and accounts receivable. These documents will help you when calculating income taxes or applying for loans or lines of credit.

A Profit & Loss Statement is another name for an Income Statement. It is a critically important financial document that shows whether your business is making or losing money by comparing its revenues to expenses. By knowing this information, you can make better financial decisions to increase revenue or reduce costs. That will ultimately grow your company and make it more profitable.

The primary difference is how the accountant records the income and expenses. Cash accounting is when the accountant records revenues and expenses in real-time, but only when cash is exchanged. It gives you a clear picture of your company’s current cash flow.

Accrual accounting is when your company’s revenue and expense transactions are recorded in real-time, even if there is no cash exchanged. It is often the better accounting method for measuring your company’s financial performance.

Check out the Profit & Loss statements that our accountants prepare for you. If revenues exceed expenses, you have made a profit. Of course, these statements calculate profits and losses during various fiscal periods, such as annually, monthly, and quarterly. So, you may have no earnings on some monthly statements, but high profits on yearly statements.