Small Business Accounting Reports and Statements

Having financial and accounting knowledge can make a difference in the success of your business. As small business owners you need to be able to manage the financials of the business. Hiring good accountants to perform bookkeeping and accounting of your business can make the difference as it will make you look organised, accurate and up to date. This will also save you time and in return you will save money by saving time. It is very important for or small business owners to know about small business accounting reports and statements. Below are the main accounting statements and reports:Annual financial reports:
This report is generally issues by your accountant every year and it important requirement for your annual tax return.Business activity statements (BAS) preparation for GST:
BAS stands for business activity statement this statement is issued by your accountants monthly or quarterly depending on your businesses transactions. BAS is a form submitted to the Australian Taxation Office by all businesses to report their taxation obligation. This include entries of debits and credits of your business. Every activity statement carries a unique Document Identification Number (DIN). Activity statements can be submitted to the ATO on paper (mail), by phone, electronically (Electronic Lodgment System or “ELS”) or through the business portal (via a Tax Agent). Small business activity statement, is important for annual tax return.Statement of Financial Position (balance sheet):
This statement is also prepared by your accountant annually and includes all your current assets, non current assets, current liabilities and non current liabilities. A balance sheet is often described as a snapshot of a company’s financial condition. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as owner’s equity or the net worth of the company or, the net assets, net worth must equal assets minus liabilities.Statement of financial performance (profit and loss statement):
This statement is also prepared by your accountant annually or quarterly. This includes all your business revenue less all your business expenses.The accounting can also include financial analysis of your business performance and cash flow report.Cash flow report:
This statement can be done annually or quarterly, these includes cash going into your business and cash going out of your business. It is usually measured during a specified, finite period of time. Cash flow is a generic term used differently depending on the context. It may be defined by users for their own purposes. It can refer to actual past flows, or to projected future flows.The above are the main statement used to prepare small business accounting records. It is very important to know about each statement as it is important for your business. I recommend to small business owners to take a small business course which covers the management of small businesses including small business accounting, and finances.

Government Small Business Loans to See Your Business Grow

An idea can change the world, for good or bad – that’s a separate issue. But an idea really changes the world – we have all witnessed it time and again. To cite examples, there were groups which invented the internet. And now, using the same platform, there has been something that no one thought that would happen – it has virtually sucked out profits from its competitors and is the Numero Uno in the world; a small startup as a college networking site, evolved into the gigantic $200 billion Facebook – as we know it today!Small ideas but the ability to implement them in a manner than profits you and the society makes all the difference today! The human brain is so complex and full of ideas that you need not go anywhere else to scratch for ideas. Unfortunately, we only use a part of the brain’s immense, un-comprehended power. Now, that you have got an idea and want to implement it by starting off with a small venture, we all know that you’ll need money for that.How to Get Funds for Your Small Business?One thing has been taken care of here and that is – THE idea. Now you require funds; where can you seek funds? There are multiple avenues for seeking the same; however it is the government that people are so comfortable to approach. The government seems to be a source of immense funds, but the question is – is it willing to fund your idea? The answer is simple, if you have confidence in your idea/project the government will also have. However, the government agency – Small Business Association which oversees all this and more has become a bit of investment shy after the recent wave of recession.However, with rising rates of unemployment and job sacking and mounting debts – the federal government is encouraging small entrepreneurs and wants to help them to create jobs for themselves and grow enough so that it starts generating employment for others. That is the government’s side of thinking. Whatever it is, you have to make sure that you will concentrate on your business and nothing else. The main thing is to make your business stand and make it stand quickly with a solid foundation.Loans even before starting a business are seen as a debt but that’s fine! At a point o time, every business is in debt but that does not mean even for once that it cannot make profits or generate revenues. It is natural to be in a little debt. That sustains the revenue pull in your business. But one thing to be aware of is that the debts should not mount over the period of running your business. Unless your firm is controlling the country’s economy, the government won’t come and bail you out!Small Business Association of the government will fund you by providing loans at nominal rates. This amount will be largely helpful for you to start and run your business further on.