There are three important financial statement templates. They are income statements, cash flow statements and balance sheet.
The templates are very important in determining the financial status of a company. The financial statement template are usually made by the certified public accountant or the CPAs.
GAAP (Generally Accepted Accounting Principles):
The financial statement template are worked out as per the generally accepted accounting principles. In other words, it can also be said that the financial statement template are GAAP compliant.
Understanding the Financial Statement Template:
Profit & Loss Statement or the Income Statement:
The income statement is referred to as the statement, which reveals expenditure and sales of a particular company over a specified period of time. The income statements are calculated on a quarterly basis, monthly basis or are calculated yearly. It takes into account the following:
Expenditure: for conducting various operations of the company, utilizing assets and other related expenses.
Net Revenue: for settling liabilities, purchasing assets
General And Administrative expenses(G&A expenses): expenses for utilities, paying wages to the officers or personnels, fees for legal proceedings, insurance, stationery, professional fees.
R&D charges: expenses incurred for conducting studies pertaining to research and development.
Cost of goods sold: the amount of money, a company spends for manufacturing a new product.
Other expenses include cost of implementing and preparing efficient marketing techniques.
- Cash Flow Statement:
This kind of statement usually starts off with a zero balance. Financial statement template of this category, register the cash navigation within the company. Money received from outside as well as money leaving the company are recorded in this statement. Starting with a zero balance, information pertaining to further transaction is recorded in the statement.
- Balance Sheet:
As indicated by the name, the balance sheet uncovers information about the total assets, liabilities and equities held by a company at a specified time. Assets may be in form of cash or kind.
Last Updated on : 26th June 2013