Financial statements are like the financial dashboard of your business. They tell you where your money is going, where it’s coming from, and how much you’ve got to work with. They’re super helpful for making smart business moves. And they’re 100% necessary if you want to get a loan or bring on investors.
Financial statements are reports that summarize important financial accounting information about your business. There are three main types of financial statements: the balance sheet, income statement, and cash flow statement.
Together, they give you — and outside people like investors — a clear picture of your company’s financial position.
We’ll look at what each of these three basic financial statements do, and examine how they work together to give you a full picture of your company’s financial health.