Today’s tip is all about understanding the financial information for your business, which is reflected on Financial Statements. Ok, so I am sure that you have heard the term Financial Statement before, but probably have always been confused as to its exact meaning in relation to Your business. You are probably wondering, “Which statements are the most important, what is the meaning of the numbers on the statements, and which statement do you share with your CPA for tax filing? Now I know numbers may not be your thing, and you might already be bored, but please stay with me. Here’s the thing, your numbers tell a story, and their voice is revealed through your financial statements. Without your statements, you’re flying blind, up the creek without a paddle, on a tightrope without a net; I think you get the point.
Understanding your financial statements and taking action are the key to having a profitable business to take care of yourself and your family. At a minimum, all small business owners must regularly review and understand the following three financial statements: Profit & Loss, Balance Sheet, and the Statement of Cash Flows.
Continue reading Numbers Divas Tip: Small Biz Financial Statements – In Plain English