Rayvat Accounting

A financial statement is not just designed for the business or entrepreneur. Shareholders, employees, management, bankers, suppliers, and other interested stakeholders will peep into the statements or demand the document on a regular basis in order to make crucial decisions. The statements will also be crucial for accurate tax returns preparation and other statutory filings. Several elements must be captured in the statement so that it can serve the intended purpose. Elements of Financial Statements Here are the 5 basic elements of any financial statements Assets :- These are resources owned and controlled by the business for which present or future benefits may flow to the business. When balancing the accounting equation, asset value will be the difference between equity and liabilities. Examples of assets include computers, land, cash, inventories, goodwill, prepaid expenses, and property, among others. Liabilities :- Liabilities are obligations that the business must...

Every business needs to have a revenue target which they need to fulfill within a given time frame. There may be deviations from the path to achieving the objective, but eventually, we can attain the goal if we have a specific plan. The path or road map that we need is a financial budget, and it is indispensable for the prompt and long-term success of our business. We can understand the bigger picture and prepare ourselves for any business challenges down the road.  What Does a Budget contain? A budget gives us a snapshot of the revenues versus the expenses incurred by our business for a given period which could be a month, quarter or a year. This is our Cash Flow Management . The Best Time to Create a Financial Budget The right time to prepare a financial budget would be now! The budget should cover a minimum time frame that gives us enough insight into the future. A ballpark figure for the time frame would be 12 months so that we can get a perspective of the future busi...