Personal income statement and balance sheet template, All organizations, whether private, public, or non-profit, need to prepare financial statements in their own performance to give fiscal accountability and accuracy to their stakeholders and individuals with an interest in the business. These statements enable management to generate business decisions, so enable creditors to evaluate loan programs, and supply individuals with information to generate investment choices.
Financial statements provide information from an organization’s accounting documents about their economic assets and duties on a specific date, in addition to their financial activities over a period of time. These statements are usually prepared in accordance with Generally Accepted Accounting Principles (GAAP), that would be the criteria issued by the American Institute of Certified Public Accountants (AICPA), but they may also be prepared on other comprehensive basis of accounting, such as cash basis or tax basis, based upon the requirements of their users.
A lawyer may compile the information given by the client to a suitable financial presentation. This is the sole financial statement that a non-certified accountant could prepare. The accountant will examine the statements and issue a report. If the organization has elected to omit some disclosures, then this has to be included in the accountant’s report of their financial statements, in addition to though the disclosures were included; they may have influenced the consumer’s conclusions.
The statement of cash flows shows how changes in the balance sheet and income statement affect cash and cash equivalents. In addition, it demonstrates operating, investing, and financing activities. The statement of cash flows aids management and investors ascertain the short term viability of a company, especially their ability to pay costs. As a CPA I examine these three financial statements and their supporting documentation supplied by the business and assesses the general accounting principles used. From this information I then create an audited financial statement which will include an opinion, either qualified or unqualified, in regards to the nature of the financial records.
In composed financial statements, the organization, not the accountant, is responsible for its accuracy and completeness of the financial documents. Since the statements weren’t audited or reviewed, they aren’t accredited by a Certified Public Accountant (CPA). No opinion or assurance is expressed in the accounts regarding if the accumulated statements are free from material misstatements or false/missing data or if they’re found to be accurate, complete and fairly presented to satisfy the requirements of this US GAAP (Generally Accepted Accounting Principles).