What is a Financial Binder?
What is a financial binder? What is it consisted of and what does it mean for your business?
You may have heard the following terms thrown around when shopping around for financial management services:
Management Reports
Financial Binder
Monthly Reports
Financials
These terms are names for a collection of curated reports used for business operations. Generally, businesses that are for-profit consist of the following documents
P&L, Profit & Loss
Balance Sheet
General Ledger
Statement of Cash Flow
Depending on the type of business, these monthly reports can consist of additional reports such as A/R Summary, Budget vs. Actuals or any report you can pull in your accounting software. These monthly reports can and should contain any information that would need to be reviewed on a monthly basis.
Reviewing financial binders on a monthly basis is important not only for better understanding your business, but it is good practice to retain these reports for your tax professional to use come tax time.
Stay in the know of your spending practices and be a step ahead of tax preparation. Don’t know where to start? Schedule a free consultation today!
This blog is for educational purposes only. Mikaesbooks is not a tax advisor or legal professional. Seek an Enrolled Agent, EA or a Certified Public Accountant, CPA, or other tax professional for more information.
