You need financial information to measure your business’s performance and properly plan for the upcoming period. Certain financial statements should be done monthly, quarterly, and annually so you can conduct a proper financial analysis. You should expect a bank reconciliation to be done monthly to ensure your accounting records are correct. The process matches your cash balance to the bank statement. It is also beneficial to analyze inventory monthly to make sure that you are holding the right level and to detect theft. Depending on the needs of your business, you can also prepare a trial balance monthly to confirm that your accounts are balanced. Financial statements such as your income statement, balance sheet, and cash flow statement are generally done on a quarterly basis, although you can do so more frequently. This allows you to compare your revenue and expenses against your budget, and make any necessary adjustments such as cost reductions. The balance sheet allows you to check your financial health, while you can see your sources and uses of cash from your cash flow statement. You should also review these financial statements at the end of the year; this is a good time to consider taxes. You can start gathering information at the end of the year and take tax planning steps. It is also a good time to create budgets for the following year.
2017-03-01 00:00:002017-03-01 00:00:00https://quickbooks.intuit.com/ca/resources/bookkeeping/month-quarter-annual-reportsBookkeepingEnglishAnalyzing regularly prepared financial statements is an important part of measuring your business' performance.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/managers-review-quarterly-report.jpgMonth vs. Quarter vs. Annual Report
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.