Being able to read your business' financial statements is an important part of being a business owner. Knowing how to look at certain numbers on the balance sheet or income statement on a given day a get a sense of how your business is doing will help your to make better decisions and meet your goals.
The balance sheet will provide you a picture of your company's position at a certain date. It gives you the detail of the Assets, Liabilities and Shareholders Equity at that specific point in time. The balance sheet is integral when planning and setting goals.
The income statement will provide you a picture of your company's income, expenses, gains & losses over a period of time. This information is essential in tax planning as well as goal setting. It gives you a picture of the companies financial footing and helps in timely decision making.
Other aspects of financial statements including cash flows give more details on your businesses financial situation. We discuss more financial statements and how to analyze them in more detail in our November 4th blog.
As a team P+G strives to help our clients fully understand their financials and tax returns. Please do not hesitate to ask questions when you have them.
