Stay Ahead of Tax Law Changes: Learn about the One Big Beautiful Bill

Financial Statement Preparation in Houston, TX

Prepare Financial Statements in Houston, TX

Small businesses in Houston, TX need to be aware of the importance of preparing financial statements. Financial statements are essential for a variety of reasons, including obtaining financing, making sound business decisions, and measuring progress. 

There are three main types of financial statements: the balance sheet, the income statement, and the cash flow statement. The balance sheet provides an overview of a company’s assets, liabilities, and equity. The income statement shows a company’s revenue and expenses over a period of time. The cash flow statement tracks a company’s inflows and outflows of cash. 

Business owners should consult with an accountant or other financial professional to ensure that their financial statements are accurate and compliant with generally accepted accounting principles (GAAP). Financial statement preparation can be a complex and time-consuming process, but it is vital for the success of any small business.

Why Prepare Financial Statements?

As a small business owner, you may be wondering why you need to prepare financial statements. The truth is, financial statements are essential for a variety of reasons. First and foremost, banks and other lenders will almost always require financial statements when considering a loan or line of credit for your business. In addition, financial statements can help you make informed decisions about your business’s spending and budgeting. Finally, regular financial statement analysis can provide insights into your company’s overall financial health and performance. 

Types of Financial Statements

There are three main types of financial statements: the balance sheet, the income statement, and the cash flow statement. Let’s take a closer look at each one. 

The balance sheet provides an overview of a company’s assets (what it owns), liabilities (what it owes), and equity (the difference between assets and liabilities). The balance sheet is sometimes referred to as a “snapshot” because it provides a picture of your business’s finances at a specific point in time. 

The income statement or profit and loss shows a company’s revenue (money earned) and expenses (money spent) over a period of time—usually one year or one quarter. This information is used to calculate net income—the bottom line on an income statement—which represents the profit or loss generated by your business during that period of time. 

The cash flow statement tracks a company’s inflows (cash coming in) and outflows (cash going out) of cash over a specified period of time. This information is used to assess your business’s short-term liquidity—in other words, whether or not you have enough cash on hand to cover your current debts and obligations. 

What’s included in our Financial Statement Preparation services?

Our financial statement preparation services include:

– A free consultation to assess your needs and develop a custom plan

– An analysis of your current financial situation

– A review of your income and expenses

– The preparation of balance sheets, income statements, and cash flow statements as needed

– Advice on how to improve your cash flow and profitability

– Insightful recommendations on ways to reduce costs and increase revenue

– A detailed report of our findings and recommendations

Financial statement preparation is crucial for small businesses in Houston, TX for many reasons. If you’re seeking financing from banks or other lenders, you will almost always be required to provide financial statements. In addition, financial statements can help you make better decisions about spending and budgeting for your business. Finally, analyzing your financial statements on a regular basis can give you valuable insights into your company’s overall financial health and performance. Work with an accountant or other financial professional like Molen & Associates to ensure that your financial statements are accurate and compliant with GAAP regulations.

 

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

What’s the Difference Between a Bookkeeper and an Accountant?

Understanding Bookkeeping and Accounting For many business owners, the terms “bookkeeper” and “accountant” are used interchangeably. However, they represent two distinct roles in the financial health of your business. While both are essential, they serve different...

One Big Beautiful Bill: High-Income Phaseouts You Need to Know

The One Big Beautiful Bill (OBBB) delivers tax relief across many income levels, but for higher earners, some benefits phase out as income climbs. These phaseouts gradually reduce or eliminate valuable deductions and credits once your adjusted gross income (AGI)...

One Big Beautiful Bill: Clean Energy and “Green” Tax Credits You Can Use

The One Big Beautiful Bill (OBBB) didn’t just change income tax brackets and deductions—it also continued and expanded several clean energy and environmentally focused tax incentives. These credits reward taxpayers who make energy-efficient upgrades, invest in...

How the OBBB Tax Bill Could Save a Texas Family Thousands in 2025

(A Before & After Story) When the One Big Beautiful Bill (OBBB) passed, many families wondered what it might mean for their taxes in real life. Let’s walk through a fictional example that might sound a lot like someone you know — maybe even you. Meet Jake and...

How to Correctly Pay Yourself and Take Cash from Your Business

As a small business owner, one of the most common questions you might have is: “How should I pay myself?” The answer isn’t always straightforward because it depends heavily on your business structure and tax situation. Whether you're aiming to maximize tax deductions,...

Estate & Gift Planning – What’s Changing Under the One Big Beautiful Bill (OBBB)

The One Big Beautiful Bill (OBBB) brings several important changes for individuals and families looking to transfer wealth, reduce estate taxes, and protect assets for future generations. Whether you’re planning modest gifts to family or multi-million-dollar legacy...

Qualified Small Business Stock (QSBS) – Everything You Need to Know Under the One Big Beautiful Bill (OBBB)

Thinking of investing in—a high-growth small business, the Qualified Small Business Stock (QSBS) exclusion can be one of the most powerful tax strategies available. The One Big Beautiful Bill (OBBB) makes important adjustments that keep QSBS attractive for...

Research & Development (R&D) Tax Credit – Everything You Need to Know Under the One Big Beautiful Bill (OBBB)

The Research & Development (R&D) Tax Credit has long been a powerful tool for businesses that innovate, design, and improve products or processes. The One Big Beautiful Bill (OBBB) brings important changes that expand eligibility, increase potential savings,...

Qualified Opportunity Zones (QOZ) – Everything You Need to Know Under the One Big Beautiful Bill (OBBB)

The Qualified Opportunity Zone (QOZ) program has been one of the most powerful tax incentives for investors and business owners since it was introduced in 2017. The One Big Beautiful Bill (OBBB) makes several adjustments that extend its reach, giving investors more...

One Big Beautiful Bill: Frequently Asked Questions (FAQ)

The One Big Beautiful Bill (OBBB) is one of the most sweeping tax updates since the Tax Cuts and Jobs Act of 2017. With so many provisions affecting individuals, families, and business owners, it’s normal to have questions. At Molen & Associates, we’ve compiled...

Request an Appointment Today

10 + 5 =

Call us at

Share This