A business document that represents comprehensive summary of financial activities of a business organization, company or individual person for stated period of time is called financial statement. Financial statement templates are ready to use document created by experts to help accountants and small business owners when making financial statements. Core purpose of generating financial statements for a business or company is to enumerate financial health, performance and liquidity of mentioned business entity, company or individual person. Such statements are also uses to determine that whether the company is generating profit or not.
An accurate and carefully made financial statement shows a business’s ability to generate profit. Financial statements are prepared for variety of purposes. A company or business setting can use its financial statements to show company’s financial strength to potential investors. Business management can find out accurate amount of profit generated by the company during the mentioned time period. Tax authorities may require financial statements to fill tax return for a business, company or individual. Balance sheet, income statement, statement of cash flow and statement f change in equity are four major financial statements that each and every public limited company will need to prepare each year.
Small businesses and companies are not liable to create such financial statements however making such statements can help them to know about current financial position of the business or company. Use of proper format is recommended by experts to prevent errors and mistakes when making financial statements. If you are not using expensive software or accounting tools for generating financial statements then try to use shown below free financial statement templates. These are best to use for all types of businesses and companies. Basic excel formulas and formats are loaded in all templates to make them handful for all.