How to Prepare a Financial Report
List your income for the period covered by your report.. Determine the cost of goods or services you sold.. Compute your gross profit.
Steps
List your income for the period covered by your report.
List your income for the period covered by your report.
Determine the cost of goods or services you sold.
Determine the cost of goods or services you sold.
Compute your gross profit.
Compute your gross profit.
Provide an itemized list of expenses over the course of the same period.
Provide an itemized list of expenses over the course of the same period.
Subtract your expenses from your gross profit.
Subtract your expenses from your gross profit.
Determine the current retained earnings balance.
Determine the current retained earnings balance.
List the net income from your income statement.
List the net income from your income statement.
Subtract any income distributed to shareholders or equity partners.
Subtract any income distributed to shareholders or equity partners.
Calculate the updated amount of retained earnings.
Calculate the updated amount of retained earnings.
Format your page into two columns.
Format your page into two columns.
List assets in the left column.
List assets in the left column.
Place liabilities and equity in the right column.
Place liabilities and equity in the right column.
Total assets and liabilities to balance the books.
Total assets and liabilities to balance the books.
Determine the organization's cash balance at the end of the previous period.
Determine the organization's cash balance at the end of the previous period.
List the net income from your income statement.
List the net income from your income statement.
Group your cash flows into 3 categories.
Group your cash flows into 3 categories.
Adjust the net income to find the cash provided by operating activities.
Adjust the net income to find the cash provided by operating activities.
Repeat the same process for investment and financing activities.
Repeat the same process for investment and financing activities.
Calculate the cash at the end of the period.
Calculate the cash at the end of the period.
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