Small and Medium Enterprise Accounts Management

Accounts management is the process of recording and maintaining financial transactions and information of a business entity. To prepare financial statements a business needs to maintain its all business transaction in a proper way. Financial statements of any business include:

• Profit and loss statement / Income statement
• Balance sheet
• Cashflow statement
• Note to Financial statement
• Statement of changes in equity

Profit and loss statement / Income statement

Income statement is also known as profit and loss statement. It shows the business’s incoming and outgoing funds over a period of time. The income statement takes revenue, expenses, profits, and losses into account. This tells you how much business earned or lost over the period.

Balance Sheet

A balance sheet is a statement of assets, liabilities, and owner’s equity.  This shows the total resources of business for the period it covers. It will help you understand your business’s financial strengths and financial obligations.

Cashflow statement

Cashflow statement shows the incoming and outgoing business cash. It shows how quickly cash enters and leaves your business. It uses the information and records from income statement and balance sheet. The bottom line of each flow shows the net increase or decrease in cash for the period.

Note to financial statement

This is the end note that gives greater context around contained information in your other financial statement documents. This is the requirement of International Financial Reporting Standards (IFRS). Information in this document is required to ensure that you are compliant with standards and regulations.

Statement of changes in equity

This document shows the changes made in the company’s share capital, reserves, and retained earnings. In the case of a sole proprietorship, this statement shows the changes to the owner’s equity and also shows changes between partner’s equity.