4 Important Report Elements Limited Liability Company



The financial statements of a limited liability company are very important, because the success of a business is seen from the financial benefits.









 The financial statements of a limited liability company are crucial, because the success of a business can be seen from the financial gains that have been successfully recorded in it. At the end of the year or the end of the period, a company must prepare financial statements as a form of accountability for the management of the company to shareholders or capital owners.


Especially if the company is in a limited liability company format, where the business owner is plural with the manager or director of the company based entirely on the appointment of a team of owners of capital, so there is a clear legal responsibility of the director to shareholders or capital owners.


In this regard, a limited liability company's financial statements have been prepared. Actually, the financial report itself is one part of the accountability report from the manager or director to the owner of capital.


This accountability report itself actually includes many things such as program and expansion reports, activity reports and includes financial reports. This report will later become the basis for evaluating the performance assessment of the company's management by the team of capital owners.


The financial statements of a limited liability company are indeed crucial, because after all a company is a commercial unit where the value of its success is mostly reflected in the value of financial gains that have been successfully listed. And every program or expansion carried out aims to increase business profits, maintain business sustainability and extend the economic life of the business.



style="display:inline-block;width:350px;height:350px"
data-ad-client="ca-pub-6970958211488116"
data-ad-slot="7998107345">

Then with the description above, what should you include in the financial statements of a limited liability company? The following illustrations will guide you.


4 Important Elements of Financial Statements
Limited company

Actually, the financial statements of limited liability companies are no different from the generally accepted financial reporting standards that have been known so far.

Because it is intended for multiple groups or the public, the report received is a standard financial report consisting of 4 important elements, namely:


Income statement

This report is simply the presentation of a report that shows the value of the company's profits obtained from total income, both cash and non-cash minus the total costs associated with the production and supply of goods, both direct and indirect costs.


The income statement displays information about the profit value of the business. Profit is an important element of the success of a business management. The better the value of the profit generated, the better the evaluation results will be. Later this profit value will also be an assessment of the credibility of the business's ability to earn profits by calculating the ratio between assets and profits.


Cash flow statement

This report is actually a general description of cash inflows and outflows, both incoming and outgoing from sales and non-sales income, as well as those that go out both for the cost of providing goods and business operations and for costs outside business operations.


If the profit calculation is intended to show business and sales performance, the cash flow report is more on the report to show the health of the company. A healthy company is indicated by a condition where at least income is balanced with expenses. This means that the company is able to finance any expenses that must be made on time.


Balance Sheet

The financial statements of this limited liability company focus on the value of assets compared to the value of the company's capital and liabilities. Or more simply is a picture of the wealth of the company. How much capital the company has and how much debt the company has. And the extent of the allocation of the combined funds into various types of assets.


The greater the ratio of capital to debt will be a picture of the company's financial strength. This shows that most of the assets of the company come from internal business capital or from the collection of funds from capital owners.


From the balance sheet report, you can arrange several ratios such as the ratio of capital to profit, assets to profit, capital to assets and several ratios that are considered as company health.


Statement of changes in capital

Especially for this report, you don't always need to make it separate from the balance sheet, but some limited liability companies consider it necessary to prepare it separately from the balance sheet.


This report describes the present value of capital after deducting the capital structure such as various related expenditures. payment of debt and added to the value of profit.


That was an overview of what you need to include in the financial statements of a limited liability company and how the composition in the financial statements of a limited liability company.




Read:

Comments

Post a Comment

Popular posts from this blog

The Story of a Mother's Sacrifice for Her Child

Image
  This story is the true story of a very poor family, who has a son. His father had died, leaving the mother and son to support each other. The mother struggled to raise her child, at that time the village did not have electricity. While reading a book, the child is illuminated by the light of an oil lamp, while the mother lovingly sews clothes for the child. When autumn enters, the child enters high school. But it was precisely at that time that his mother suffered from a severe rheumatic disease so that she could no longer work in the fields.  At that time, students were required to bring thirty kg of rice every month to the school canteen. The son understood that his mother could not possibly give him the thirty kg of rice. And then said to his mother: "Mom, I want to quit school and help Mama work in the fields". The mother stroked her son's head and said, "You have such intentions, Mama is very happy, but you have to stay in school. Don't worry, if Ma
Read more
Image
  For a woman today, freedom is something that is very desirable. In the past, women were often prohibited from traveling alone, nowadays there are many women who travel alone to make themselves happy. One of the reasons why a woman wants to travel alone is because of freedom. to go wherever you want to go. This experience turns out to have benefits, which are very good for practicing self-confidence and seeing the world at the same time. Although many women have been traveling alone, there are still some things that need to be considered, if not it can even be a scary experience. Before traveling alone, here are some tips to make your trip a pleasant experience: 1. Dress like a local One of the best and safest things to do when traveling is to try to blend in with your surroundings as best you can. Because in general, female solo travelers will look like tourists and this will actually become a target for criminals. 2.Merging with other travelers Even though
Read more
Notification! This is an "ADVERTISEMENT" page, please click the "CONTINUE" button to go to the VIDEO/ARTICLE page that you want. ☺️Thank you for visiting, don't forget to come back☺️ CONTINUE
Read more