Period end financial statements

Your period end financial reporting (or financial statements) is something that comprises of the most significant statements for your company. When I say “period end” I mean both each reporting period, i.e. a month, a quarter, and the whole reporting period you prepare your Annual Report for (normally a year).  

Specifically, it may be very likely so that for each month you consider it necessary to also prepare the statement of cash flows just to see where you are in terms of cash and it’s in and out flows. However, it may also be that you prepare your accounts for each month and prepare cash flows for just a quarter or for a year and just once. Depending on your business’ needs, the main question and main variance when it comes to reporting in entities is the question of how often it’s necessary to project cash flows and understand the needs of cash. If it’s not an issue, the less infrequent the statements and projections are prepared for.

And then there are statements you normally only prepare just once a year, when preparing your Annual Report – statement of changes in owner’s equity. It’s a standalone separate statement reflecting on changes in all equity accounts by transactions themselves, i.e. how dividends impacted accounts etc.