A financial statement template refers to an official record of an entity’s financial activities, either an organization or an individual. These written reports quantify your company’s performance, financial strength, and liquidity. It also reflects the financial impacts of events and business transactions of your company.

Financial Statement Templates

What is a financial statement?

You can also describe a financial statement template as a snapshot of your financial position at a certain point in time. It defines your assets, your net worth, and your liabilities. Ideally, your net worth should be the difference between your assets and liabilities.

If you come up with a positive net worth, this means that you have more assets liabilities. But if you get a negative result, you have more liabilities than assets.

Financial Report Templates

What are the types of financial statements?

Generally speaking, a financial statement template comes in different types. Before making a financial report template of your own, determine what type you need first:

  • Income Statement
    This is the most well-known type of statement that contains your financial information for a specified period of time – expenses, revenues, and loss or profit. This is also known as the Statement of Financial Performance as it allows you to evaluate and measure your financial performance from one period to another.
  • Balance Sheet
    Also called the Statement of Financial Position, this statement shows you the balance of your liabilities, assets, and equity by the end of a certain time period. It also shows you the values of your net worth. You can determine your net worth by subtracting your liabilities from your total assets.
  • Statement of Change in Equity
    This shows your company’s shareholder contributions, equity movements, and equity balances by the end of a certain accounting period. The information contained in this statement includes the classification of share capitals, total share capitals, retain earnings, dividend payments, and other state reserves.
  • Statement of Cash Flow
    This statement shows the movement of your cash during a certain period of time. You can use it to help you understand your cash movement. This statement has three sections – cash flow from your operation, cash flow from your investments, cash flow from your financing activities.
  • Note to Financial Statements
    Although this important statement is often overlooked, it is a requirement by the IFRS. Through this statement, you disclose all of the information that matters so that you can have a deeper understanding of such. Use it to detail your financial information associated with certain accounts.

How do I write a financial statement?

You would also use the financial statement template to report your financial activities and health to your potential creditors and investors. In this regard, it becomes essential that your personal financial statement or business financial statement should include the following elements:

  • Assets
    These are the possible economic benefits that an external entity obtains and manages on previous transactions.
  • Comprehensive Income
    This is a change of equity during a certain period from events, circumstances, and transactions from outside sources. It typically includes all of the changes in equity during the defined period aside from those coming from distribution to and investments.
  • Distributions to Owners
    These are the reductions in net assets brought about by rendering services, incurring liabilities or transferring assets to owners. Moreover, the distributions to owners reduce ownership interest.
  • Equity
    This is the residual interest in the remaining assets after you have deducted the liabilities. In a company, equity refers to the ownership interest.
  • Expenses
    These are the outflows, incurring liabilities or assets use during a certain period from producing or delivering services or goods that form your company’s central operations.
  • Gains
    These are the equity increases that come from business transactions and all types of other transactions aside from the ones that come from the investments or revenues.
  • Investments by Owner
    These are the net asset increases resulting from the transfers of something valuable from other entities to increase or obtain ownership interest.
  • Liabilities
    These are the possible sacrifices of economic benefits in the future from current obligations to provide services or transfer assets in the future due to events or transactions made in the past.
  • Losses
    These are the equity decreases from all events, circumstances, and business transactions affecting your business during a certain time period except those which result from distributions or expenses.
  • Revenues
    These are the enhancements or inflows of assets or a settlement of liabilities during a certain time period from rendering services, producing or delivering goods or other activities that constitute your central operations.

Financial Spreadsheets

How to read a financial statement?

In order to understand the financial situation of your company, both on its own or within your industry, you first must review and evaluate several financial spreadsheets including all of the different types mentioned above. You will discover the importance of these financial statement template when you learn how to read them:

  • Reading a Balance Sheet
    This document imparts your company’s “book value.” With it, you can see the resources your company has and how you financed these resources as of a specified date. The document shows your company’s liabilities, owner’s equity, and assets.
  • Reading an Income Statement
    This document gives you a summary of the cumulative effect of gain, expense, loss, and revenue transactions for a certain time period. You would share this as part of your company’s annual or quarterly report. It shows the information on business activities, comparisons, and financial trends, over set time periods.
  • Reading a Cash Flow Statement
    The main purpose of this document is to give you a detailed snapshot of what happens to your company’s cash during a certain time period. It shows how your company has the ability to work in the long- and short-term, based on the amount of cash that flows into and out of your company.
  • Reading an Annual Report
    This is a written report that you must publish annually to your shareholders. It describes your company’s financial and operational conditions. Beyond the editorial, the report provides a summary of your company’s financial data that includes your company’s balance sheet, cash flow statement, and income statement.
    In addition, it also gives you insights about your industry, the discussion and evaluation of your accounting policies, your company’s management team, and any additional information about your company’s investors.