While the goal of having a business 8(a) certified is to gain the United States Government as a customer, the 8(a) application process itself has a huge additional benefit: the 8(a) application forces you to get your business organization in order. This means compiling several business documents. Most important of these are the company financial statements.
Why your small business needs financial statements
Small business owners are in the difficult position of having a few people trying to do everything. Often things fall by the wayside in the pursuit of survival.
To many small business owners, the company financial records may seem confusing. This makes sense; they are specialists in their own fields rather than accounting. Yet the importance of having good financial statements is paramount to success, whether it is in the 8(a) application process or business in general. Not only do you need a complete set of accurate financial statements to become 8(a) certified, but you need them to get a bank loan and money from investors.
Company financial statements are very simple documents which can include a vast amount of information. An easy way to understand what goes into a set of financial statements is to break the financial statements into three parts.
These parts are:
- Income Statement
- Assets and Liabilities
- Equity
Income Statement.
The Income Statement shows the money coming in and the money going out of your business during a given time called the reporting period a day, week, month, year or a date range of your choosing.
The Income Statement has three sections: Income, Cost of Goods Sold, and Expenses. The
While the business financial statements are just one piece of the 8(a) application puzzle, properly prepared and updated financial statements take a lot of the guesswork out of running a business, making your business more efficient and competitive. Please call us at (571) 203-1459 or email us at sales@smallbusinesscertifications.com for a free consultation and to learn how we can help you.
Wendy Strackbein has been working in the 8(a) certification field for over four years, specializing in complicated 8(a) applications. She has helped hundreds of non minority Women Owned Businesses and Service Disabled Veteran owned businesses successfully navigate the 8(a) application labyrinth. More information about her company can be found at http://www.smallbusinesscertifications.com
Wendy Strackbein
President
Small Business Certifications, LLC
Phone - 571-203-1459
Fax - 703-656-4911
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