A financial statement is presented in a form similar to the form of the budget. The difference is that the budget is produced before starting the business. In the budget, you estimate income and expenses. The financial statement is produced after business has been done. In the financial statement, you state actual income and expenses, which may not be exactly the same as what you planned in the budget.
The importance of the financial statements arise from being a translation of business, and an indicator that the procedures followed are correct, in which we can follow up the expenses and reduce them where possible. Further, we can view the profits of a company, study and compare them with the previous statements to define how much it is improved or declined in business.
One of the most important features of the financial statements is credibility and accuracy, where they have correct information and real figures. This is necessary for decision-makers to make their decisions based on the information contained therein.
For more information on financial statements and their different types, you can see the attached link for **** Income Tax - Sales Tax
A simple example for financial statement that can be prepared for natural juice business:
Sample Financial Statement for One Month (Appendix 8)
ACTUAL INCOME: AMOUNT TOTAL
Fruit juice deliveries 72 canisters ($8 each) $576.00
Fruit juice retail sale 45 canisters ($12 each) $540.00
TOTAL ACTUAL INCOME: $1,116.00
ACTUAL EXPENSE:
Buy mangos 180 pieces ($0.50 each) $90.00
Buy bananas 450 pieces ($0.20 each) $90.00
Buy pineapples 100 pieces ($1.00 each) $100.00
Pay salaries to 2 workers ($120 each) $240.00
Pay delivery transport 24 times ($5 each) $120.00
Business mobile phone credit $10.00
Rent for plant & shop building $100.00
Electricity $40.00
TOTAL ACTUAL EXPENSE: $790.00
ACTUAL PROFIT/LOSS: $326.00