As a small business owner, it’s important to have accurate and organized financial statements in order to understand and run your business. Financial statements outline the value and performance of your company, and they’re what others use to measure your success. So if you want to grow your business, your financial statements will become an important part of the process – especially if you want to get a business loan or investors.
If you’re unsure about the importance of financial statements for small business growth, check out the following 5 reasons why you should finally put your financial statements in order to help grow your small business.
Proof Of Your Success
You know how your business is doing, but your investors, shareholders, and creditors will need more proof. Having financial statements can provide the facts that show your business is on the right track.
A Way To Identify Opportunities
Financial statements give you a clear and accurate account of how your company is truly performing. The figures can help you make important business decisions like if you can afford to invest your money into expanding your business. It also gives you a means of monitoring your progress and identifying opportunities for future growth and success.
Be Prepared For Tax Time
Keeping your information organized and in order will help you be prepared for tax time. Regular financial reporting will ensure that your accounts have been settled and rectified well before you need to report to the government.
Obtain New Business
Your company’s financial statements can help you obtain new business. New clients, investors, and suppliers will want to see your track record of success before they agree to conduct business with you. Having well organized and accurate financial statements can help you obtain better business arrangements and loans.
Catch Costly Mistakes
Reviewing your financial statements will help you catch any mistakes that could be costing you money. A professional accountant or bookkeeper can also use your records to detect fraud or theft that is only found when reading between the lines.
When you want to grow your business successfully, having organized financial statements is a must. If you’re struggling to keep your financial statements in order, allow us to help. At Pridi Law Professional Corporation, we have the experience and expertise to help you grow your business by taking care of all your bookkeeping, payroll, taxes, and financial statements.