No matter whether you own a business or are simply managing a volunteer group, you need to produce budget reports. Such a report lists items for which your company will incur expenses, and projects how much each will cost. It then tracks the costs and calculates how much those costs were over or under budget. Explanations for significant changes are recorded, and a summary takes stock of the financial impact of any differences.
The general types of financial statements you might need to create are:
Note: A special kind of budget report, a budget revenue report, examines the previous fiscal year’s budget against actual revenue and expenses to gauge its accuracy.
▶ Balance sheet.
▶ Income statement.
▶ Cash flow statement. ...