Bookkeeping by Mark Smith
Author:Mark Smith
Language: eng
Format: epub
Tags: bookkeeping and taxes, accounting fundamentals, accounting tools for business, accounting information, accounting for small business, accounting principles, accounting theory
Publisher: Mark Smith
Published: 2018-10-03T00:00:00+00:00
Chapter 6: The Different Financial Statements
As we have mentioned a few times in this guidebook, there are some financial documents that are important to your business. These documents are going to help you keep your finances in line, help you know whether you are making accurate entries into the ledger, and can even assist you when you need to bring in investors or lenders to grow your business.
As an owner of a small business, you need to have a good understanding of some of these basic statements so you can really get a good look at where the business stands financially. This is where it is extremely important for you to always communicate with the bookkeeping.
There are actually quite a few different financial statements that you could look at. The one that you want to work with will depend on what you are interested in finding out. But the most common ones, and the ones that are often seen as the most important include:
The cash flow statement
The ownerâs equity statement
The income statement
The balance sheet
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