Once the balance of each account is calculated, all numbers are entered into the small business’ accounting database. This greatly simplifies the process of producing standard monthly reports. From this starting point, we can add or subtract the operating activities reported on the income statement. This includes all revenues and expenses that the company incurred during the year. Close the books with less runaround. Share this sheet with your accounting team to easily manage your financial month end process and keep everyone on schedule. Use the sheet for monthly, quarterly, and annual tasks. A common habit is to toss all paper receipts into a box and try to decipher them at tax time, but unless you have a small volume of transactions, it’s better to have separate files for assorted receipts kept organized as they come in. Many accounting software systems let you scan paper receipts and avoid physical files altogether. Financial statements are mainly prepared for external users. There users are people who are outside of the company or organization itself and need information about it to base their financial decisions on.