Accountants in Watford

Accountancy and bookkeeping: What documentation do accountants in Watford have to produce?

Many of us know someone who is an accountant. Some of us even know accountants in Watford. However unless you have had a detailed discussion with them, work in a firm liaising with accountants or use their services for your company you may not know what sort of things they have to do every day.

Accountants in Watford have the primary responsibility of compiling reports on the finances of a business. These are supplied to individuals in the business ranging from management personnel to shareholders. The main documents which accountants in Watford have to compile consist of the following:

Balance sheets, otherwise known as statements of financial provision, provide a snapshot of the financial position of the firm for the moment at which it is drawn up. There are several variants of the balance sheet but it is made up of three sections – assets (tangible and intangible economic resources), liabilities (payables such as wages and long term commitments like pensions) and equity (issued capital attributable to shareholders or a parent company). Accountants in Watford have to provide these at regular intervals.

Profit and loss accounts are another major piece of documentation handled by accountants in Watford. Otherwise known as an income statement, it accounts for revenues and expenses and helps assess past financial performance. These are limited in a number ways but can help make projections about future performance.

A statement of retained earnings is when accountants in Watford explain the changes in a firm’s retained earnings. Retained earnings are profit kept by a firm rather than distributed to shareholders. Grounds for this retention include investment in new machinery or premises.

A cash flow statement is a detailed breakdown of how money is being spent. Accountants in Watford often produce these to assess where money will come from to pay for bills.

Where can I find accountants in Watford

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