Financial Statement Analysis Burke, VA

By analyzing your financial statements, you can get a general understanding of your company’s past, current, and projected performance. There are three main financial statements that your business should analyze:

1. Balance Sheet: Your balance sheet is a statement of your assets, liabilities, and capital of your business that details the balance of income and expenditure at a specific point in time. Your auditor would verify accuracy of your figures, as well as the existence of assets and liabilities of your business.
2. Cash Flow Statement: Your statement of cash flows is a financial statement that measures cash generated or used by a company at any given period. Your auditor would compare the entries in your cash flow statement to the bank statement to determine accuracy and validity.
3. Income Statement: Your income statement displays your company’s financial results for a period of time, displaying your revenue, costs, expenses, and gross profit. Your auditor would verify the accuracy of your business’s transactions by comparing the cash book and the individual books of your accounts. 

By finding the trends and ratios (such as activity and liquidity ratios) of your financial statements, you can compare the historical economic data of your business to the present day value. Gilliland and Associates can help your small business with a financial statement analysis in Burke, VA.