This is our sixth and final look at financial statements. In this article we discuss how to use financial statements in your business. Using financial analysis Attorneys and accountants rely heavily on financial reports when buying or selling a business, selling shares in their company, obtaining conventional and non-conventional financing, tax matters and on an [...]
Types of reports An independent Certified Public Accountant (CPA) can provide three levels of services related to the financial reporting of a business enterprise. These are a compilation, review, and an audit. A compilation provides the lowest level of assurance. A compilation engagement is the most common for small closely held businesses because it is [...]
This is the fourth of our six part series on financial statements for businesses. Here we look at analyzing financial statements and what they can tell us. Financial statement analysis An important part of any business analysis is a comparison of the financial performance of the subject company to benchmark data available in the marketplace. [...]
Here is the third of our six part series on financial statements. In this article we discuss probably the most important information, the cash flow. Cash-flow statement The statement of cash flows reports a company’s sources and uses of cash. These sources and uses are broken down into three distinct categories: Operating activities–cash from the [...]
This is the second of our six part series discussing financial statements. In this article we look at how liabilities are treated and the income statement. Liabilities The liabilities of an enterprise can best be described as the claims against the assets of the enterprise. As is the case with assets, liabilities are segregated between [...]
This the first in a six (6) part series discussing one of the most important items a small business owner/manager needs to have and understand. A company’s financial statements. The company’s lifeblood, revenue and expenses, is accurately reflected in the financials. Moreover if you ever want to sell or buy a business, the financial statements [...]
A corporation that has issued only one class of stock may conduct its business or enter into agreements that treat certain shareholders or creditors in a manner that causes the company’s actions/agreements to be considered a second class of stock.
Preparing corporate minutes is akin to the “red-headed stepchild” of corporate governing tasks. Ask yourself a question; are the potential consequences of failing to keep accurate, well drafted minutes worth taking a chance on? Would you bet your company on it?
When starting a business the legal form you choose will have a significant impact on how your company will run, be taxed and protect you from liability.
