If you have a business, you know the importance of financial statements, or at least one of the financial statements at least one time per year.
In the case of a true business structure like an S Corporation, C Corporation or Partnership (or LLC that acts like one), you are required to have financial statements to file your return. If you have a single member LLC that has taken the default tax treatment or if you are a Sole Proprietorship, all you need to know is your income and expenses to file your return. The IRS knows that too. That’s why they are 10 times more likely to be audited.
Either way, though, if all you’re doing with your financial statements is using them to file your tax return, then you’re missing out on the biggest reasons to have financial statements.
- Pinpoint problems when they’re still time to fix them
- Plan for cash, income and tax
- Maximize your biggest profit makers
- Control in-house theft and embezzlement
Those are four pretty powerful reasons to receive financial statements on a regular basis. Your business will be better.
We can help you turn your activities into reports and then with our virtual CFO services, decipher those reports into activities.
Find out more by giving Richard a call at 888-592-4769.