Sound accounting principles for SMEs – Measure progress
As we go into this month of the tax year-end, we decided to offer some basic advice on financial and tax matters. This is a mini-series about just a few sound accounting principles for SMEs – and our first blog is on understanding the three main accounting tools that help you to measure your financial progress. These are:
Balance Sheets – These assist you to know what your business is currently worth
Statements (Profit and Loss) - These ascertain whether you are making a profit.
Cash Flow Statements – These monitor cash flow and forecast your future cash balances.
These three tools help you to make critical financial decisions and give you a better understanding of other types of financial reports.
Consult the professionals
We recommend that unless you have an accounting background and the time to do this effectively, that you consult professionals to do it for you. We at V-Assist can handle such matters or source the right people to do so, thereby freeing up your time to work on your business instead of wasting time working in it!
Our motto is ‘It’s about time’ so contact us to maximise yours - and find out how we can ensure you will always practice sound accounting principles!