Financial statements provide insight into the overall health of a company. As a small business owner, you’ll want basic working knowledge on how to read and analyze financial statements. When you understand the key components of financial statements, you can make strategic business decisions as well as identify challenges and opportunities within the business. If you’re considering a bank loan, the lender will require these documents as a window into the company’s financial position.
Regardless of whether you have an accounting team, or you do the books yourself, we’re highlighting the three financial statements that all business owners should be able to interpret. We believe that when you can manage your money wisely, you’re actually setting yourself up to be more successful.