Developing the Financial Statements
Now you have all the information you need to develop the month-end financial statements. When you get to December, this accumulated information will also give you what you need for your year-end statements.
As we mentioned earlier, the balance sheet section of the chart of accounts was developed based on the order in which accounts will appear on the balance sheet. The P&L statement is more flexible and you can format it in a way that best matches your business needs.
Some companies like to compare current-year financial data with prior-year data and show year-to-date information for both years. This allows them to compare year to year and see how the current year income and expenses compare to the prior ...