3 Most Important Financial Statements

Financial statements can be the key to growing and sustaining small business.

What are financial statements?

Financial Statements are accounting documents, which prove the financial condition of a small business. They can be very useful for the following reasons:

• Helps to determine if a business is profitable

• Helps to determine if a business has the ability to keep current on debts

• Helps track money going in and out of the business

• Helps to investigate the details of cash flow problems

• Helps businesses make future business decisions related to growth and expansion

• Helps plan monthly and yearly business goals

• Helps track progress over time

The top three important financial statements for business owners to review on at least a quarterly basis are:

1. Balance Sheet- details business assets, liabilities and owners’ equity

2. Profit & Loss Statement-details business sales and expenses

3. Statement of Cash Flows-shows changes in money flowing in and out of the business

Action Step: Set up a meeting with your bookkeeper and review your financial statements for last month.

If you want more actionable bookkeeping tips to help you maximize profits, reduce expenses and BUILD WEALTH, hit me up!

Alex