Mondays here are usually for motivation to enable you start your week with an air of positivity. However, this week, starting from today, we decided to do something different. We want you to be introspective about your business and vet your success so far.

Forbes released an article by Mike Kappel in 2017 that laid out some considerations when gauging the success of your business.

1. Consider your business Financial Statements to ascertain financial performance.

The financial objective is of great important for a business venture. You need to constantly vet your financial health and you do this by examining your financial statements.

There are 3 (three) common statements;

a. The Income statement which measures the profitability of your business during a period and shows your business’s profits and losses.

b. The Balance sheet or Statement of financial Position which measures your business’s financial health by how much you owe (as equity and liabilities) and own (as assets).

c. The Cash flow statement which shows how liquid your business is (i.e. how you are able to quickly obtain cash to meet your day to day obligation).

Do you maintain up to date financial records? It will be quite difficult and largely inadequate to gauge your successes without a recourse to your financial statements. And no, bank statements alone are not sufficient.

Financial Statements also help in ascertaining tax payable for the period to enable you obtain your Tax Clearance Certificate (TCC).

Business Legal comprises competent professionals readily available to proving bespoke professional advice and business support for your businesses. For enquires, visit our website at www.businesslegal.ng