As a business owner you can benefit greatly from timely financial management reports that allow you to keep up with the day-to-day finances of your business.
Financial statements basically are a financial picture of your business and clients use it for various reasons. The four main financial statements are:
- Balance sheets: Demonstrates what a company owns and what it owes at a fixed point in time.
- Income statements: Shows how much money a company made and spent over a period of time.
- Cash flow statements: Presents the exchange of money between a company and the rest of the world also over a period of time.
- Statements of shareholders’ equity: Referred to as a “statement of shareholders’ equity,” it shows changes in the interests of the company’s shareholders over time.