What Are Financial Accounts?
Financial accounts are a record of a businesses performance during the last period which is usually the last year. The financial accounts are used to give shareholders information, bankers, suppliers and certain other authorities or regulatories. Financial accounts usually include a profit and loss account, a balance sheet, cashflow statement and a statement of recognised gains and losses, but what do all these factors in these accounts mean? The profit and loss account measures the business performance by comparing the income against the expenses over a given time period. The expenses will be the cost of goods or services as well as all the expenses incurred in providing that income. The given time is period is usually a year as you have to file your accounts on a yearly basis however for many reasons, you can apply to Companies House and either reduce or extend your year end. The balance sheet is a snapshot of your business’ assets and liabilities on a particular day which is the dat
