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Financial Statements Provide Important Business Information
The more you know about why your company makes or loses money, the better armed you are to make changes.
To accountants, the relationship of financial statements (balance sheet and income statement) is very specific. To the average business owner trying to read those statements, much of it is confusing at the very best.
One will get better, more useful information from the statements when the relationship between them is understood. Maybe this comparison will help you see the connection. The balance sheet (the listing of your assets and debts) is like a still photograph. The income statement is a moving picture. The balance sheet will state "as of" a date; the income statement will state "for the period ended." Look at this nonaccounting example.
Example. On the last day of the month, we take a picture of you sitting in your office chair. Then, at the end of next month, the still photo shows you sitting across the room. This is the balance sheet (your position statement). We know for a fact that you have moved from position one to position two. What we don’t know is how you got there. Did you just walk straight across the room, or did you travel around the building or maybe even across town before stopping there? The income statement is the moving picture that gives us the details of how and where you traveled from position one to position two.
The numbers on the balance sheet can all be verified for a given date. You can reconcile the bank balance and verify the accounts receivable to the penny. You can confirm your liabilities with your creditors. When you subtract all the debt from the total assets, you get your equity. If your equity has increased $10,000 for the month, what did it take to produce it? Were sales $30,000 and expenses $20,000, leaving $10,000 profit? Or were sales $100,000 with expenses of $90,000? This story is told in the income statement.
By comparing the income statements for several periods and analyzing the various income and expense accounts, you can determine if and where changes need to be made. The more you know about why your company makes or loses money, the better armed you are to make changes. If you would like assistance in using your financial statements or other business reports, give us a call.
Burzenski & Company once again supported an event at the Children's Center in Hamden. On October 24, three employees volunteered to be onsite for the Children's Center Trunk or Treat Halloween event. Callie Kutys, Shelly Panico and Carmen Rosado donned costumes and handed out candy to about 100 children. Booooooooo!
IR-2024-263, Oct. 10, 2024
WASHINGTON —The Internal Revenue Service announced today continued progress on Employee Retention Credit claims, with processing underway on about 400,000 claims, representing about $10 billion of eligible claims.
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On Thursday, August 29th, we held our annual state-of-the-firm and company picnic at Owenego Inn located in Branford, CT.
The firm recognized the 40th employee anniversary of Partner Melody Mann Fox, CPA. Managing Partner Bill Kalinowski congratulated Melody on her tenure and accomplishments with the firm. Said Ralph L. Ricciardelli, CPA, Emeritus, a founding partner of Burzenski & Company, PC, “Mel, 40 years where does the time go? It’s not easy to build a firm and you’ve done it with a lot of grit, expertise, and professionalism. You have been integral in building the firm. You’ve been integral in helping with the staff, whether it was the administrative staff or the accounting staff. I don’t know what we would do without you. There aren’t enough words of appreciation that we can give to you.”
It was a great day for employeea to play games such as bocce, corn hole, Jenga, and a trivia contest with staff split up into teams.
At the firm's annual state-of-the-firm and company picnic on August 29th, we recognized the 40th employee anniversary of Partner Melody Mann Fox, CPA. Managing Partner Bill Kalinowski congratulated Melody on her tenure and accomplishments with the firm.
Said Ralph L. Ricciardelli, CPA, Emeritus, a founding partner of Burzenski & Company, PC, “Mel, 40 years where does the time go? It’s not easy to build a firm and you’ve done it with a lot of grit, expertise, and professionalism. You have been integral in building the firm. You’ve been integral in helping with the staff, whether it was the administrative staff or the accounting staff. I don’t know what we would do without you. There aren’t enough words of appreciation that we can give to you.”Mel, 40 years where does the time go? I remember when you first came to us in 1984 as a staff person. Our first tax season together was 1985. There was a lot of fun things that happened during those early years that laid the ground work for the future.
2024 Connecticut Sales Tax Free Week
Highlights
The 2024 Sales Tax Free Week is Sunday, August 18, through Saturday, August 24, 2024.
Sales or purchases of certain items of clothing or footwear costing less than $100 per item are exempt from sales tax.
This special exemption applies to purchases made from retailers located in Connecticut as well as from on-line retailers.
This year will be Connecticut's 25th Sales Tax Free Week.https://portal.ct.gov/drs/sales-tax/sales-tax-free-week
Sarah Williams, formerly of Abilene, TX, has joined the staff at Burzenski & Company, as a Staff Accountant. She earned a Bachelor of Business Administration degree as well as a Master of Accountancy degree from Abilene Christian University in Abilene, TX.
Prior to joining our firm, she was as a Tax Associate.
She has two cats named Fig and Peach.
Burzenski & Company, PC will close the office on Fridays at 12:00 (noon) in the months of July and August.
Please contact us during our normal business hours of 8:30AM to 5:00PM. 203-468-8133
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