What type of financial statements should I keep?

If you are a small business owner in Michigan, it is important to understand what types of financial statements you should keep in order to be compliant with small business law in this state. The most common type of financial statement that you should maintain is a balance sheet. This document outlines your assets, liabilities, and capital account, and is used to calculate key financial metrics like liquidity, solvency, and profitability. In addition to a balance sheet, you should also keep other documents like income statements, cash flow statements, and statement of equity. These documents should be prepared on a regular basis to track the financial health of your business. Keeping these financial statements up to date is important for several reasons. First, it allows you to track how your business is doing financially. This can help you make more informed decisions about future investments and other financial matters. Furthermore, the government requires businesses to submit certain financial documents for tax or regulatory purposes. Finally, depending on the size of your business, you may need to produce financial statements in order to obtain funding or investment. By keeping these financial documents up to date, you can ensure that your small business is compliant with the law in Michigan.

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What type of financial statements should I keep?

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