Financial Statements

A Financial Statement is a written report that quantitatively summarizes the financial status of an organization for a stated period of time. It includes an income statement and balance sheet describing the flow of resources, profit or loss, and the distribution or retention of profits. It is a statutory requirement for every organization, irrespective of the kind and size, to prepare and maintain financial statements.

In this competitive age, every organization, irrespective of its size of operation needs to concentrate on core processes to succeed. This has further increased the need to outsource their non-core processes to specialists. Outsourcing the preparation and maintenance of financial statement is one such service.

Types of Financial Statement Preparation Outsourced
Income statement: An income statement is a financial statement containing the net income/net loss incurred by an organisation during a particular period of time. It is also known as a Profit/Loss Statement. Net income/Net loss is calculated by adding all the revenues during a certain period and subtracting all the expenses incurred in the same period. An income statement usually contains Gross Revenue (Gross Sales), Costs of Goods sold, Returns and allowances, Selling, General and Administrative Expenses, Net Income(profit) or Net loss.

Balance Sheet: A Balance Sheet is a very important financial statement depicting the financial position of an organisation on a particular date. It lists the Assets (what the business owns) and Liabilities (what a business owes). The difference between the two is known as the Net Worth of the organisation.

Cash Flow Statement: A cash Flow Statement depicts an organisation's cash position during a period of time. It has three categories: Financial Activities, Operating Activities and Investment Activities. It also depicts the increase or decrease in cash and also the percentage change on comparing the statements of two different periods.