How inflation could affect your financial statements
Costs are rising at levels we haven’t seen for decades. As you factor the effects of inflation into your financials, look beyond the income statement. Other aspects of your financial statements that might be hit by today’s high rate of inflation include inventory, acquired goodwill, investments, foreign currency transactions, long-term leases and variable-rate loans. These changes may have income tax consequences. And inflationary pressures can even lead to going concern issues. Contact us for help anticipating how inflation is likely to affect your company’s financials and brainstorming ways to manage inflationary risks.
