Accountants are responsible for preparing three primary types of financial statements for a business. The income statement reports the profit-making activities of the business and the bottom-line profit or loss for a specified period. The balance sheets reports the financial position of the business at a specific point in time, often the last day of the period. and the statement of cash flows reports how much cash was generated from profit and what the business did with this money.rnrnEveryone knows profit is a good thing. It\'s what our economy is founded on. It doesn\'t sound like such a big deal. Make more money than you spend to sell or manufacture products. But of course nothing\'s ever really simple, is it? A profit report, or net income statement first identifies the business and the time period that is being summarized in the report. rnrnYou read an income statement from the top line to the bottom line. Every step of the income statement reports the deduction of an expense. The income statement also reports changes in assets and liabilities as well, so that if there\'s a revenue increase, it\'s either because there\'s been an increase in assets or a decrease in a company\'s liabilities. If there\'s been an increase in the expense line, it\'s because there\'s been either a decrease in assets or an increase in liabilities. rnrnNet worth is also referred to as owners\' equity in the business. They\'re not exactly interchangeable. Net worth expresses the total of assets less the liabilities. Owners\' equity refers to who owns the assets after the liabilities are satisfied.rnrnThese shifts in assets and liabilities are important to owners and executives of a business because it\'s their responsibility to manage and control such changes. Making a profit in a business involves several variable, not just increasing the amount of cash that flows through a company, but management of other assets as well.rnrnMost people probably think of bookkeeping and accounting as the same thing, but bookkeeping is really one function of accounting, while accounting encompasses many functions involved in managing the financial affairs of a business. Accountants prepare reports based, in part, on the work of bookkeepers.rnrnBookkeepers perform all manner of record-keeping tasks. Some of them include the following:rnrn-They prepare what are referred to as source documents for all the operations of a business - the buying, selling, transferring, paying and collecting. The documents include papers such as purchase orders, invoices, credit card slips, time cards, time sheets and expense reports. Bookkeepers also determine and enter in the source documents what are called the financial effects of the transactions and other business events. Those include paying the employees, making sales, borrowing money or buying products or raw materials for production. rnrnThere are many different reasons and ways of making money that many small businesses and large corporations have need for accountants that are very good with keeping things in line. If you have ever invested any amounts of money into the stock market in any way shape or form, its wise to consider scouring the website for someone who can help you get to the top with your hard earned money.rnrnThere is a fellow by the name of Timothy Sykes that keeps very exact records on all of his trading activities that takes place in his life. You may want to fins out if the entertainment that he provides to many followers is something that you might be interested in finding out about.rnrnrn
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