The third financial statement, the Statement of Cash Flows, ties the Income Statement and Balance Sheet together. Many, considering that “cash is king,” view this as the most important of the financial statements. It is generally not even prepared, which puts a business owner in the dark about cash. The Statement of Cash Flows, like […]

The Balance Sheet measures the business’ position at a point in time. It is a snapshot of the business that is often neglected by less than savvy business owners. The American-style Balance Sheet shows the assets on the left side and the liabilities and equity on the right side. The two sides balance, hence the […]

The Income Statement is the most frequently used of the primary financial statements. Also known as the Profit and Loss or P&L, the Income Statement measures the results of business operations for a period of time. This contrasts with the Balance Sheet which is the business’ position at a point in time. The Income Statement […]