Small Business Financial Statements
needed for Investments and Loans



Small Business Financial Statements needed

Small Business Financial Statements - Almost all investors and lenders want to see your Small Business financial statements. By preparing a basic financial statement package for your Small Business, and keeping it current, you'll be in a better position to act quickly on financing opportunities. There are two levels of Small Business financial statements to prepare, the basic documents needed for most small business financial activities, and supporting documents needed, especially for large loans or investments.



Basic Small Business Financial Statements

Basic Small Business and/or Personal Financial Statements:

Small Business Balance sheet

Financial report that shows the status of a company's assets, liabilities and owners' equity; this gives a complete picture of the worth of a company.

Income Statement also called Profit-and-Loss Statement. Summary of a company's revenues, costs and expenses during one accounting period. This shows how profitable a company is. If a company is new, these can be projected income statements.

Cash flow projections

Estimates of the schedule on which cash will actually move into and out of your company. Cash flow can be very different than income statements, especially for companies that operate on an accrual basis accounting.



Supporting Financial Information

Certain financial activities will require greater information.

This information may include:

Audited financial statements

Financial documents like those listed above, but prepared by an accounting firm that audits the documents to make certain they are correct.

Last two-three years' business tax returns.

Last two-three years' partners' and owners' personal tax returns.

List of current accounts

Current business plan

Appraisals of assets that secure loans.

List of other personal assets and liabilities of the partners/owners.



Small Business Financial Statements

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