A nice feeling to me is when I know the financial books are in order. Once all the data is entered to date, all accounts are reconciled and reviewed, I’m confident that the reports are telling the true story of a companies’ wealth.
One reason I like accounting is that everything has to balance. If the bookkeeper/controller is true to her/his work, they will work to make sure everything balances to the penny. You just never know when a $1.00 adjustment is really a combination of errors resulting in a net difference of $1.00.
Once you know that things are caught up and in balance, it’s time to read the reports that tell the story. Learn to read the following reports:
• Balance Sheet
• Profit and Loss aka Income Statement
• Statement of Cash Flow
• Subsidiary reports which may list out items that are shown as totals on the Balance Sheet
Once you understand these reports, you open the book of your company… the General Ledger, this is where the detail is.
And your companies story goes on year after year….