Client financial report

Client financial report

Financial reports are disclosures that provide insight in the current monetary standings of a company at any given time. These disclosures are made on a quarterly and annual basis. Quarterly periods cover three months at a time. Annual periods follow a standard calendar year or can be a pre determined fiscal year period set by a company.

Small businesses may elect to start out handling financial reports and other accounting aspects in house. As a company grows in size and profit margin, it is advisable to seek the services of external financial support. This support typically comes in the form of an accountant who handles the financial reporting responsibilities including tax obligations. In this setting, the company is considered a client of the accounting organization.

Client financial reports are identical to individual company financial reports. Both cover the same elements of financial disclosure with standard reports. The only main difference between the two formats is that a client financial report is prepared by an external source. Individual company financial reports are prepared by an internal accounting source.

All financial reporting begins with balance sheet presentation. Client balance sheet financial reports list assets, liabilities and shareholder equity standings. Assets include cash, receivables and any prepaid items such as rent or insurance. The value of equipment minus any depreciation in value is also included in the asset section. Liabilities and shareholder equity section includes current payable accounts such as property tax and insurance. Any long term liabilities such as a loan note are included as well. The amount of shareholder stock issued at a current stock price per share is disclosed at the end of the section.
Client statement of income details all available sources of revenue for a company. These figures are presented against the company expenses and a net income amount is determined. The net income amount is what a client is worth at that particular point in the financial period. Normal expenses include salaries, utilities, rent, advertising and other general operating expenses. Income will come from sale of goods or services that the client provides.

Statement of cash flow expands on the revenue presentation in the income statement. Financial information provided in this section show where a client obtained revenue for a particular period. It then shows how the client spent the revenue received. Activities pertaining to income relations include operations, general finance and investments made by the client.

Client financial reports come to a close with the presentation of shareholders equity statement. Here the cost per share of stock available to shareholders is disclosed. As these shares are paid out in dividends over the financial period, those amounts are disclosed as well. The statement of shareholders equity starts and ends with a beginning balance at the start of the year and an ending balance. The ending figure is the amount available to shareholders.