Statement of Shareholders’ Equity

Another important financial report for business owners is the Statement of Shareholders’ Equity, also known as the Statement of Retained Earnings or Equity Statement.

It shows the amount of equity the owners have in the business at the beginning and end of the accounting period, including any additions or deductions.

This statement becomes useful if you plan to expand your business. The greater the amount of equity you have, the more likely you will receive a business loan.

Also, if you want to sell your business, the shareholders’ equity establishes a baseline for the asking price.


About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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