Hypothetical Business Scenario In 2018, Hamid took an early retirement after many years at the VP-level in a multinational retail banking services firm. In early 2019, he did his due diligence and com

Hypothetical Business Scenario

In 2018, Hamid took an early retirement after many years at the VP-level in a multinational retail banking services firm. In early 2019, he did his due diligence and completed a competitive analysis and discovered a niche market in the diversity and inclusion training space. Hamid started an consulting business offering diversity and inclusion coaching to retail banks and financial institutions. Since then he has been laser focused on building his client base and was able to achieve and sustain monthly profits since month 8.

As part of the annual 2019 tax reporting process, Hamid’s accountant is asking for receipts/invoices, and any other items which track the incoming and outgoing of cash and other business assets.

Questions

  • What items will the accountant need to create a 12-month Income (Profit & Loss) Statement?
  • What are the primary distinctions between a Profit & Loss Statement and Balance Sheet?

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