Also referred to as a report.
The data gathered is used to create statements and reports.
Statements are provided to external agencies such as HMRC, companies and lenders.
They are made up of the same data but are laid out differently to achieve different results.
The four main statements are as follows:
- Income statement (statement of profit and loss
- Balance Sheet (statement of financial position)
- Statement of owners equity
- Cash flow statements
Statements provide an overview and an insight into a business.
Often overlooked but vital to every business.