Tag: Financial Statements

Find the Numbers that Drive Your Business

Financial Statements. I hope you’re not shaking your head with dread when I mention this topic. I know it’s not always exciting to review the numbers, but keeping an eye on the bottom line is key to maximizing profits. If you read and follow these 3 Financial Statements, you can identify where your business can improve. Balance Sheet – presents a financial position of a company at any single point in time.  It is the financial picture for today (or last month, last year etc.).  The Balance Sheet has two columns, one side is the assets (what you own) the other liabilities (what you owe).  There is a double entry system which keeps everything even on this statement.  Credits=Debits, Assets=Liabilities Income Statement – presents the performance of a company over a period of time.  It shows the Net Income/Loss in relationship to the Net Change in Assets/Liabilities.   This relationship between …more