{"id":19071,"date":"2022-04-26T07:11:59","date_gmt":"2022-04-26T14:11:59","guid":{"rendered":"https:\/\/floqast.com\/?page_id=19071"},"modified":"2022-05-20T06:25:46","modified_gmt":"2022-05-20T13:25:46","slug":"financial-statement-effects-template","status":"publish","type":"page","link":"https:\/\/floqast.com\/financial-statement-effects-template\/","title":{"rendered":"Financial Statement Effects Template"},"content":{"rendered":"\n<p>Every transaction that a business makes affects its financial statements. Every time a company sells a product or service, collects on an invoice, purchases inventory or supplies, distributes dividends to shareholders, or engages in any other financial transaction, line items on the balance sheet or income statement (and sometimes both) will be impacted.<\/p>\n\n\n\n<p>This is because every time an accountant records a transaction, they debit one account and credit another. This double-entry system helps ensure accuracy in the company\u2019s accounting records and financial statements.<\/p>\n\n\n\n<p>A Financial Effects Template can help you clearly understand the transaction and the impact it may have on a company\u2019s financial statements.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"814\" height=\"586\" src=\"https:\/\/floqast.com\/wp-content\/uploads\/2022\/04\/Financial-Statement-Effects-Screenshot_814x586.png\" alt=\"\" class=\"wp-image-19074\" srcset=\"https:\/\/floqast.com\/wp-content\/uploads\/2022\/04\/Financial-Statement-Effects-Screenshot_814x586.png 814w, https:\/\/floqast.com\/wp-content\/uploads\/2022\/04\/Financial-Statement-Effects-Screenshot_814x586-300x216.png 300w, https:\/\/floqast.com\/wp-content\/uploads\/2022\/04\/Financial-Statement-Effects-Screenshot_814x586-768x553.png 768w\" sizes=\"(max-width: 814px) 100vw, 814px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><a class=\"ek-link button green\" href=\"https:\/\/get.floqast.com\/hubfs\/Assets\/Financial%20Statement%20Effects%20Template.xlsx\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\">Download Template For Free<\/a><br><sup>Pre-defined Microsoft Excel Template<\/sup><\/p>\n\n\n\n<h2 id=\"h-how-do-i-write-a-financial-performance-statement\">How do I write a financial performance statement?<\/h2>\n\n\n\n<p>Financial statements can be used to evaluate a company\u2019s overall financial performance. These statements typically include:<\/p>\n\n\n\n<ul><li><a href=\"https:\/\/floqast.com\/blog\/balance-sheet-template-free-download\/\" class=\"ek-link\">Balance Sheet<\/a><\/li><li><a href=\"https:\/\/floqast.com\/blog\/how-to-create-a-profit-loss-statement-free-template-floqast\/\" class=\"ek-link\">Income Statement<\/a><\/li><li>Statement of Cash Flows<\/li><\/ul>\n\n\n\n<p>These statements typically follow a prescribed format that allows shareholders, lenders, and managers to analyze how well a company generates revenues and manages assets, liabilities, and expenses.<\/p>\n\n\n\n<p>The links above provide templates for creating financial performance statements. Most accounting software allows users to generate these reports with the click of a button.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><a class=\"ek-link button green\" href=\"https:\/\/get.floqast.com\/hubfs\/Assets\/Financial%20Statement%20Effects%20Template.xlsx\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\">Download Template<\/a><\/p>\n\n\n\n<h2 id=\"h-what-are-the-5-components-of-financial-statements\">What are the 5 components of financial statements?<\/h2>\n\n\n\n<h3 id=\"h-a-complete-set-of-financial-statements-contains-five-elements\">A complete set of financial statements contains five elements:<\/h3>\n\n\n\n<ol><li><strong>Assets. <\/strong>Assets are what the business owns and can include land, buildings, furniture and equipment, intellectual property, cash, investments and other noncash assets, inventory, accounts receivable, and prepaid expenses.<\/li><li><strong>Liabilities. <\/strong>Liabilities are what the business owes. They can include accounts payable, notes payable, loans and lines of credit, bank overdrafts, unearned revenue, and accrual expenses.<\/li><li><strong>Equity.<\/strong> Equity represents the owners\u2019 or shareholders\u2019 stake in the company. This can include common stock, contributed capital, and retained earnings, also known as earned capital. Total assets minus total liabilities equal equity.<\/li><li><strong>Revenues.<\/strong> Revenue is the money generated from normal business operations.<\/li><li><strong>Expenses.<\/strong> Expenses are the costs a company insurers to generate revenue. Expenses can include <a href=\"https:\/\/floqast.com\/blog\/what-is-cost-of-goods-sold\/\">cost of goods sold<\/a> or cost of sales, wages expense, depreciation, and more. Revenues minus expenses equal net income.<\/li><\/ol>\n\n\n\n<p class=\"has-text-align-center\"><a class=\"ek-link button green\" href=\"https:\/\/get.floqast.com\/hubfs\/Assets\/Financial%20Statement%20Effects%20Template.xlsx\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\">Download Template<\/a><\/p>\n\n\n\n<h2 id=\"h-how-do-errors-affect-financial-statements\">How do errors affect financial statements?<\/h2>\n\n\n\n<p>Errors in financial statements can create a serious threat to the health and productivity of a business. They can create problems during a <a href=\"https:\/\/floqast.com\/blog\/what-is-financial-audit\/\">financial statement audit<\/a> and trigger an audit by the IRS, state taxing authorities, and other regulators. They can also damage a company\u2019s reputation, result in a loss of public trust, and lead to fines and penalties.<\/p>\n\n\n\n<p>Analyzing the financial statement effects of a transaction can help a company avoid errors by ensuring that the transaction is properly recorded in the accounting software.<\/p>\n\n\n\n<p>Learn how to streamline and improve your financial accounting processes using this financial statement effects template built by accountants, for accountants. Discover the benefits of accurate and complete financial reporting.<\/p>\n\n\n\n<p><strong>Download Template<\/strong><\/p>\n\n\n\n<h2 id=\"h-download-this-excel-financial-statement-effects-template-to-help-your-team-analyze-and-record-financial-transactions\">Download this Excel financial statement effects template to help your team analyze and record financial transactions.<\/h2>\n\n\n\n<p class=\"has-text-align-center\"><a class=\"ek-link button green\" href=\"https:\/\/get.floqast.com\/hubfs\/Assets\/Financial%20Statement%20Effects%20Template.xlsx\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\">Download Template For Free<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every transaction that a business makes affects its financial statements. Every time a company sells a product or service, collects on an invoice, purchases inventory or supplies, distributes dividends to shareholders, or engages in any other financial transaction, line items on the balance sheet or income statement (and sometimes both) will be impacted. This is<a class=\"excerpt-read-more\" href=\"https:\/\/floqast.com\/financial-statement-effects-template\/\" title=\"ReadFinancial Statement Effects Template\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":32,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"template-seo-financial-statement-effects.php","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":2,"_editorskit_typography_data":[],"_editorskit_blocks_typography":"","_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v18.4.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Financial Statement Effects Template | FloQast<\/title>\n<meta name=\"description\" content=\"Download your Free Financial Statement Effects Template prepared by the FloQast experts.\" \/>\n<meta name=\"robots\" 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