Financial Statements & Analysis
Learn how to expertly navigate your company’s financial statements and conduct advanced analysis to generate high-value, actionable insights to develop and implement informed strategic decisions, driving growth for your business.
Balance Sheet
The balance sheet offers a critical perspective into a small business's financial health at a specific point in time by summarizing assets, liabilities, and owner's equity. Assets represent what the business owns or is owed, such as cash, inventory, or equipment. Liabilities represent what the company owes, including accounts payable and loans. Owner's equity reflects the investment from the business owner(s) and retained earnings. Understanding these components and their relationship is essential for small business owners to make informed financial decisions, and create trust with investors.
This detailed guide was developed to give small business owners a solid foundation for evaluating their balance sheet. Detailed within are the components of the balance sheet, why it’s important for small businesses, analyzing the balance sheet, and tips for maintaining a high-quality balance sheet.
Cash Flow Statement
The cash flow statement is a financial report that summarizes a company's cash inflows and outflows over a period of time. The cash flow statement is broken into three sections, categorizing cash flows by operating, investing, or financing activities. It provides key insights into a company's cash management and liquidity. Regularly reviewing the cash flow statement can help management understand potential problems before they present themselves on the income statement or balance sheet.
This detailed guide was developed to give small business owners a solid foundation for evaluating their cash flow statements. Detailed within are the components of the cash flow statement, why it’s important for small businesses, analyzing the cash flow statement, and tips for maintaining a high-quality cash flow statement.
Income Statement
The income statement, also known as the profit and loss statement, is a financial report that summarizes a company's revenues, expenses, and net income over a specific period, showcasing its financial performance and profitability. It provides key insights into a company's operational efficiency, cost management, and revenue generation capabilities, serving as a crucial tool for investors, management, and stakeholders to make informed decisions.
This detailed guide was developed to give small business owners a solid foundation for evaluating their income statement. Detailed within are the components of the income statement, why it’s important for small businesses, analyzing the income statement, and tips for maintaining a high-quality income statement.