Guide to reading Financial Statements
Guide to reading Financial Statements Financial statements are more like your business synopsis, giving you an insight into the flow of your money (in or out) and how much do you hold to sustain a business. They are the type of reports necessary for you to make wise financial decisions for your business and absolutely inevitable when you need loans or funding to expand. This article is important, especially for all the newbies out there who have ventured on a business saga but do have concerns of how to read their business finances to be in control. In this write up we shall visit the important parts of any financial statement and how can one interpret them. So, what are financial statements actually? Financial statements are the type of reports that encapsulate all your business financial transactions and related information into certain parts. There are primarily three aspects of every financial statement – Balance Sheet, Income Statement (or Profit and Loss Statement