Financial statements are used to represent the financial position of a company at a specific point in time and the effects of operations. There are four major financial statements used by public companies: the Balance Sheet, the Income Statement, the Cash Flow Statement, and the Statement of Retained Earnings. A large number of users read companies’ financial statements, trying to utilize the numbers to make informed economic decisions.
Running a small business comes with a host of challenges that must be addressed on a regularly basis, especially during periods of growth. Once the success of your business necessitates additional employees, it can be difficult to determine how to handle those responsibilities with your limited resources, especially when it is not cost effective to hire a person specifically to perform payroll duties.