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6 Things You Didn’t Know About Your Financial Statements

by admin on June 23, 2015 Comments Off

Preparing your financial statements and accounting report is required for any type of business. Included in the Accounting Services Singapore is the preparation of the financial report and statements, as well as the filing of taxes for the business. There are several things that you do not probably know and understand about your financial statements as prepared by your accountants. Here are some of them that you should know now to further manage your business and help it grow:


  1. You do not know how to interpret your financial statements. Although it is a good thing that you have a correct and precise financial statements, it is still helpful and for your advantage if you know how to interpret all those figures. When you hire an accountant from a reputable accounting firm in Singapore, it is one of the duties that he or she interprets and explains the report so that you can make immediate decisions when needed.


  1. You do not know that the report made by your accountant has no meaning. You as the business owner should understand that the financial statement is yours and it is about your business’ financial status. Your accountant does not accept it as his or her own, which is why you should know and understand everything about it. When you avail the bookkeeping services Singapore, make a way to understand it step by step for your own good and for your business as well.


  1. You do not understand why your financial statement is similar to your income tax returns. It is important that you understand each figure and why some expenses are not treated as expenses and revenues as not part of the income as you look at it. By learning the procedures, you will understand the accounting services Singapore you are availing for.


  1. You do not know why your assets and liabilities come out at such figure you never thought of. If you do not understand the bookkeeping procedures and how accounting and auditing is done for the tax preparation, you will definitely end up clueless about your financial statement.


  1. You do not know why your bankers do not really base your capacity to pay on your financial statements. As part of the credit investigation, your banker will require you financial statements, but not really use for credit investigation. In doing the accounting services for small business, your accountant knows that you will need these statements for bank loans. Ask your accountant for further explanations and you will know the reason why bankers need to come and check your business before approving the loan.


  1. You do not know that your financial status is not the basis for its market value. For investors, it is wiser to look at your business’ future revenues and business endeavors rather on your present financial statement. What they need for stability is actually not visible in your statements. Seek your accountant’s advices and maximize your Accounting Services for the growth of your business.
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