Tips about Small Business Financial Statements

Your financial statements are a window into your business. Failure to understand and review them frequently can lead to some massive headaches (take it from our own experiences!).

Join us as we take a look into what goes into your Small Business Financial Records.

In this newsletter you’ll learn about:

  • Your Annual Report
  • Your 10-K
  • Your Balance Sheet
  • Your Income Statement

The Annual Report

Your annual report is a document of your business to be shared with your stakeholders. Think of it as a chance to tell your story in a unique voice, and show potential stakeholders you are committed to them.

Your annual report should include:

  • Important Company Information
  • Yearly Business Activities
  • Sales & Expenses
  • Profits & Losses
  • Business Trends
  • A Letter From The Founder To Shareholders
  • Plans For The Next Year

The 10-K

The 10-K is a collection of financial statements that have to be filied with the SEC every year. The importance of this is to break down where debt lies within your company i.e deferred taxes, short-term loans, overhead, etc. Included within this is The Income Statement and Balance Sheet.

The Income Statement

Your income statement, also known as your P&Ls shows your Profits and Losses for that year.

Formulas Commonly Used:

  • Gross Profit Margin: It tells you how much profit is left after subtracting the cost of the goods or services sold. GPM = Gross Profit / Revenue
  • Net profit margin is the ratio of net income (or after-tax profits) to revenue. NPM = Net Profit/ Revenue

Learn More About The Income Statement Here: https://www.thebalance.com/formulas-calculations-and-ratios-for-the-income-statement-357575

The Balance Sheet

The balance sheet shows assets, liabilities, and net worth or book value. Packed with data, the balance sheet can be intimidating, but it is one of the best ways to assess the health of your company.

Learn More Here: https://www.thebalance.com/formulas-and-calculations-for-analyzing-a-balance-sheet-357277

https://www.thebalancesmb.com/how-to-prepare-a-statement-of-cash-flows-393584

Learn More In Episode 138:

https://www.businessshow.co/mistakes-and-tips-about-your-small-business-financial-statements-small-business-show-138/

Get In Touch:

https://www.linkedin.com/businessshow

SHANNON JEAN https://www.linkedin.com/in/shannonjjean

DAVE HAMILTON https://www.linkedin.com/in/davehamilton/

SADIE CYR https://www.linkedin.com/in/sadie-cyr-ba607b197

Follow Us On Twitter: https://twitter.com/BusinessShowCo

Watch Our Latest Episode Here: https://www.businessshow.co/podcast-episodes/

--

--

--

The Small Business owners’ podcast. Sign-Up and Get A Free PDF of Our Most Popular Business Guide Here: https://businessshow.co/mistakes/

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

No, the UN hasn’t reached its “use by” date

Voxxed Athens open-finances

Sequential Skin: Why We Invested

Get Closer To Your Customers And Get Closer To Profits

Air Pelosi’s Newest Ad

AirMail —January 2020 Edition

How is blended finance like a cup of coffee?

Gabriel Carrera Aspires to Create Social Impact Through Digital Marketing

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Small Business Show

Small Business Show

The Small Business owners’ podcast. Sign-Up and Get A Free PDF of Our Most Popular Business Guide Here: https://businessshow.co/mistakes/

More from Medium

How to Better Budget Your Time as a Business Professional

5 Simple Ways to Improve Your Credit Score as a Student

8 trends and predictions for success in 2022

Credit Cards — Why they are important and how they work (and everything else you need to know)