Introduction

Contractors are often required to submit financial documentation as part of the assessment process. To support you in meeting these client-driven requirements, we’ve prepared a guide outlining the three key financial statements typically requested: the Balance Sheet, the Income Statement (also known as the Profit & Loss Statement), and the Statement of Cash Flows. Each plays a distinct role in presenting a clear, standardized view of your company’s financial health. The sections below explain what each document includes and what is expected in your submission to ensure clarity, completeness, and consistency.
 

Balance Sheet

The Balance Sheet offers a snapshot of a company's financial position. It presents what the company owns (assets), what it owes (liabilities), and the residual interest held by the owners (equity).

Key Elements

Assets

• Current Assets: Includes cash, accounts receivable, and inventory—resources expected to be converted into cash within one year.
• Non-Current Assets: Long-term holdings such as property, equipment, and intangible assets like trademarks or patents.

Liabilities

• Current Liabilities: Obligations due within a year, such as accounts payable and short-term debt.
• Long-Term Liabilities: Debt and other obligations due beyond one year, including loans and bonds.

Equity

• Represents ownership in the company, including owner’s capital contributions and retained earnings.

Income Statement (Profit & Loss Statement)

The income statement summarizes a company’s financial performance over a fiscal year, showing how revenue is converted into net income. It reflects operational profitability and highlights the company’s ability to generate earnings.

Key Components

• Revenue: Total sales or income generated from core business activities.
   
• Cost of Goods Sold (COGS): Direct costs tied to the production or delivery of goods/services.
   
• Gross Profit: The difference between revenue and COGS.
   
• Operating Expenses: Overhead costs including admin, research & development, and marketing.
   
• Operating Income: Earnings before interest and taxes (EBIT), calculated as Gross Profit minus Operating Expenses.
   
• Net Income: The bottom line—profit after accounting for interest, taxes, and other non-operational items.

Statement of Cash Flows

The Statement of Cash Flows tracks the movement of cash in and out of the business during the reporting period. It helps assess the company’s liquidity and financial flexibility by breaking down cash flow into three categories.

Activity Categories

Operating Activities

• Examples: Cash received from customers, payments to suppliers, wages, interest, and taxes.
• Insight: Adjusts for non-cash items and reflects how well the company generates cash from core operations.

Investing Activities

• Examples: Purchase or sale of long-term assets like equipment or securities.
• Insight: Highlights how a company allocates capital for growth and strategic investments.

Financing Activities

• Examples: Issuance or repayment of debt and equity, dividend distributions.
• Insight: Shows how the company funds operations and returns value to shareholders.

Submission Requirements

To ensure consistency and completeness across submissions, please adhere to the following:

Full Fiscal Year Coverage 

• All financial documents must cover a complete fiscal year. Partial or year-to-date data is not accepted. Contractors are required to upload three full fiscal years, each representing a full 12-month period.

Company Identification

• Each document must clearly state the legal name of the company for accurate tracking and analysis.

What if my company does not disclose financials?

If your company does not disclose financial information, please reach out to the contact who directed your company to enroll on Highwire.

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