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Different Types of Accounting Reports: Balance Sheets

in Sydney CBD Accounting services

Financial reports are very useful when it comes to analyzing the financial health of a business or a firm. The information provided by these reports can be used by the upper management to improve the financial health of the company, predict the future of the company and make required changes in the business plan to make the company more competitive in the market. There are mainly four types of financial and accounting reports that are used as financial indicators of the company. These are capital statements, income statements, balance sheets, and cash flow statements. Lets look into what balance sheets are and how important they are in determining the financial health of a business.

A balance sheet is one of the major financial statements that are used by accountants to present a companys financial position at the end of a particular date. It can even be called the glimpse or the snapshot of the companys financial position in the market. But a word of caution here! A balance sheet gives the financial position at a moment or at a point in time. It is with the help of a balance sheet that a banking institution or a financial institution can see what a company actually owns in the market as well what are the liabilities or the credits it has in its name. Sydney CBD Accounting services can help you create professional and accurate balance sheets for your business.