Can your business continue to fund its own growth? Your company’s balance sheet can answer that question at a glance. Whereas an income statement reports sales and expenses during a set period of time, and a cash-flow statement charts the flow of money in and out of your business, your balance sheet summarizes your company’s financial health on a specific date. Let’s break down a typical small-business balance sheet and define each section. What a Balance Sheet Tells You: Ass

If you’re just starting a business, standard financial reports, like Income Statements, Balance Sheets, and Cash Flow Statements can seem daunting. But once you’ve mastered the terms and the math it’s easy to see how these statements dovetail neatly to track your company’s fiscal health. Let’s start with the Income Statement, more commonly known as a Profit & Loss Statement (or P&L), which provides a high-level view of your company’s ability to make money. The Math: Income –