The Two Most Important Financial Documents for Your Small Business
An article from the Kashoo blog
Posted by: RE Technology
Whether the size of your small business is 1 or 100 employees, $25,000 in net income or $250,000 in net income, you need to pay attention to your business accounting. Your financial statements are much more valuable than helping you to prepare your taxes. They are part of your roadmap for the profitability of your company—even if your company is a business of one.
There are two overall financial statements—each of which contains sub-documents.
1) Balance Sheet
Your balance sheet is the up-to-date picture of your company's financial position at any point in time. It contains information about your assets (positive—"black ink") and your liabilities (negative—"red ink") and gives you the "bottom line" that your accountant always advises you to watch.