In the video below, we will walk you through the three Financial Statements to help you understand what these three statements are, how they are typically structured and some key terminology.
This statement provides a summary of your company's revenues, expenses, and profits over a specific period, showing how much money your company made or lost. It highlights your operational efficiency and is critical for assessing the financial performance of your business.
This is a snapshot of your company’s financial condition at a specific moment in time. It lists all of your company's assets (what you own), liabilities (what you owe), and equity (the owner’s stake), helping you understand the net worth of your business.
This statement tracks the flow of cash in and out of your business over a period, showing how changes in the balance sheet and income affect cash and cash equivalents. It segments cash flow into operations, investing, and financing activities, crucial for assessing liquidity and solvency.
By the end of the video you'll understand what these three statements are, how they are typically structured, along with some key terminology that may or may not be familiar to you.
