The 3 Reports Your Bookkeeper Want You To Know
Understanding what a Balance Sheet, Income Statement and Cash Flow are
When running a business, your bookkeeper keeps all your numbers to help you understand the financial condition of your business.
Not every business owner understands what these reports are or what they actually mean. So, here are the 3 reports your bookkeeper wants you to know and understand. These reports help you understand what is happening with your money
1. Balance Sheet – What You Own and Owe
The balance sheet shows what your business owns. It also shows what you owe. It is like a picture of your money, your tools, your bills, and your debts all in one place.
2. Income Statement – How You Performed
The income statement shows if you made money or lost money. It looks at your sales and your costs. It tells you if your business is doing well over a set time, like a month or a year.
3. Cash Flow – Where Your Money Went
Cash flow shows how money moved in and out of your business. It tells you where your money came from and where it ended up. This report helps you understand why your bank balance changes.
These three reports work together. They help you make smart choices and keep your business strong.
