There are three major financial statements that every business owner should be utilizing to help them make the best decisions possible.
Why Should I Worry About Those?
Without accurate financial records, the information provided by each of these statements won't be very useful to your business. Using out-of-date information in these kinds of reports is a bit like using a recipe from the 1800s- chances are it's not going to come out right unless you have the right ingredients on hand.
What Are The Three Types?
1. Income Statement
An Income Statement, also frequently called a Profit and Loss Statement or P&L, shows a record of ALL of your business' income and expenses for a specified time period. Looking at this report will indicate whether your business is losing money, so you need to change course a bit, or it is creating a nice profit and you should continue.
2. Balance Sheet
The Balance Sheet is a snapshot in time of all of the assets, liabilities, and equity possessed by your business. This statement shows the overall financial picture of your business.
and finally...
3. Statement of Cash Flows
A business' Statement of Cash Flows gives a business owner/decision-maker the power to see all cash in and out of a business during a specific time period. This statement is broken down into 3 categories: cash from operating activities, cash from investing activities, and cash from financing activities.
Let Bridging The Gap Financial Services LLC help you curate up-to-date financial records for your business so that you can glean the most helpful information and make better decisions with their statements! We offer historical clean-up services as well as ongoing monthly bookkeeping support so that your business can thrive.
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