On July 27, 2020 we held our 4th session of the Virtual Mastermind class. In this session we had Bryant Luis and Lissage Monbrun- BGL Solution and LSM as speakers.
Before we start the recap, here are some important words to know:
Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.
Rating Agencies is a credit rating agency that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default.
Why are financial statements important?
- Hold information about your company’s performance
- Hold the strengths and weakness of a business
- Important for taxes, and additional duties for the company
What are included in financial statements:
- Statement of financial position
- Comprehensive Income
- Changes of iniquity
- Cash flows period
- Summary of significant policies and other explanatory information
What is a CPA?
A certified public accountant (CPA) is a designation given by the American Institute of Certified Public Accountants (AICPA) to individuals that pass the Uniform CPA Examination and meet the education and experience requirements. The CPA designation helps enforce professional standards in the accounting industry.
How to become a CPA in Florida:
- 2,080 hours of work experience, completed 52-104 weeks
- Experience must cover the following:
- Accountancy
- Compilation
- Financial advising
- Taxation
- Consultation
Who uses financial statements?
- Investors and lenders to evaluate a company’s performance
- Prospective equity investors to see whether to invest or not
- Investment analysts, money managers, and stockbrokers to buy , sell or recommend to their clients
- Rating agencies to assign credit ratings
- Customers evaluate financial statements to see if they are a dependable resource
Session 4 of the Teen Girls in Business Virtual Mastermind provided us with a wealth of information. We learned about the importance of financial statements and credit agencies and how vital they are to operate your business successfully.