These statements are decision-making tools that provide real time analysis, aid in forecasting, benchmarking, and help identify financial patterns. Accurate financials will enable you to have accurate manpower forecasting and can tell you if you can afford to purchase the new equipment or vehicle that you have been wanting to invest in. The financials will also tell you where all of your money is going and will allow you to budget more accurately and save some of those hard-earned dollars. These savings could be the difference between buying that equipment or vehicle in cash or having to finance it.

Accurate financial statements are also necessary because you will often need an accurate, current balance sheet to apply for any type of business credit. It is required for small business loans, business credit cards, and some vendors will require it to extend credit terms.

Financial statements also tell the story of how well you collect payments from clients. Your bookkeeper or accountant can easily generate an aging receivables report. This financial report could enable to you to increase your revenue quickly once you are aware of the customers you need to collect from.