The financial statements that you must understand in your business

[Samuel77]

The financial statements everyone must understand in a business is that business is all about profit making and not for loss. also you have to keep record of your sales and also every transaction done in the business.

 

[Abbeyola]

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Generally when someone ventures into a business, one of the most important tasks is the bookkeeper or the accountant that manages and records the finance of the business. If you do not have the necessary skills to take on this task by yourself then you can revert it to another person that your employee, who is experienced and can handle such tasks as well.

Either way, whether you are handling it yourself or giving it to someone else to manage, you have to be able to understand some of the basic financial statement to ensure that you stay up to date with how your business is progressing. The three financial statements that I believe that you need to be versed in are:
1. The balance sheet - this shows yoru assets and liabilities of the business and ensures that there are no discrepancies
2. The income statement showing the expenses and the income of the business
3. The cash flow projection to show how cash is coming into and being spent from the business and may include future predictions as well.

Are there are other financial statements or requirements that you feel that an owner should be well versed in?

The financial statement you must understand, is that are you making profit or operating the business organization at a loss or gain.

 

[Victor72]

One of the financial statements you must understand in your business is that the income statement should States the expenses and also the total amount gotten from the business

 

[Akinwale701]

Generally when someone ventures into a business, one of the most important tasks is the bookkeeper or the accountant that manages and records the finance of the business. If you do not have the necessary skills to take on this task by yourself then you can revert it to another person that your employee, who is experienced and can handle such tasks as well.

Either way, whether you are handling it yourself or giving it to someone else to manage, you have to be able to understand some of the basic financial statement to ensure that you stay up to date with how your business is progressing. The three financial statements that I believe that you need to be versed in are:
1. The balance sheet - this shows yoru assets and liabilities of the business and ensures that there are no discrepancies
2. The income statement showing the expenses and the income of the business
3. The cash flow projection to show how cash is coming into and being spent from the business and may include future predictions as well.

Are there are other financial statements or requirements that you feel that an owner should be well versed in?

I love the angle from which you have explained this. Everyone needs to understand all these in order to minimize loss and maximize profits.

 

[Ehizzy1]

To understand a companies financial position both on its own and within its industry you need to review and analyze several financial statements: balance sheets, income statements, cash flow statements, and annual reports. The value of these documents lies in the story they tell when reviewed together.

Most especially the balance sheet because that is what determines the profitability of the organization and also the income flow statements should be considered

 

[Setho]

Finances are very important part of a business no matter the type of the business you are into. Be it a small business or a large business. You should always look at the financial analysis as it states everything about the inflows and outflows of the company and the areas that need urgent attention.

 

[Victor001]

You must not combine business for pleasure,you must stick to the best investment other than combining and getting mix up,no when to stop taking risk.

Post automatically merged: Apr 17, 2021

You must not combine business for pleasure,you must stick to the best investment other than combining and getting mix up,no when to stop taking risk.

 

[Jumoke12]

Generally when someone ventures into a business, one of the most important tasks is the bookkeeper or the accountant that manages and records the finance of the business. If you do not have the necessary skills to take on this task by yourself then you can revert it to another person that your employee, who is experienced and can handle such tasks as well.

Either way, whether you are handling it yourself or giving it to someone else to manage, you have to be able to understand some of the basic financial statement to ensure that you stay up to date with how your business is progressing. The three financial statements that I believe that you need to be versed in are:
1. The balance sheet - this shows yoru assets and liabilities of the business and ensures that there are no discrepancies
2. The income statement showing the expenses and the income of the business
3. The cash flow projection to show how cash is coming into and being spent from the business and may include future predictions as well.

Are there are other financial statements or requirements that you feel that an owner should be well versed in?

you're making a lot of sense with this write up. one has to come to the understanding of a lot of things as far as business is concerned. thanks for the enlightenment.

 

[Ronald03]

The income statement is part of what makes me understand more about how the financial statement works and the advantage of it

 

[tyrim88]

Having a knowledge of how the financial records operate is a major plus to the owner.
The aspect of detail scrutiny on daily progression of inflow and expenditure of business activities will make you know and take critical finanacial decision on time.

 

[Softdave]

Well in my own opinion I think the financial statements of a business is a guide to help see how well your business is doing like it or not businesses are for making a living

 

[Senator]

You don't necessarily have to. E an accountant to become a business owner, but you will need some knowledge of basic accounting to keep your business in check all the time

 

[joy101]

For one to know when growing in a financial statement in a business, you need to have bookkeeper so to know when the business is growing and also to know when the business is not growing too, so us very important to have bookkeeper in a business.

 

[Jumoke12]

Generally when someone ventures into a business, one of the most important tasks is the bookkeeper or the accountant that manages and records the finance of the business. If you do not have the necessary skills to take on this task by yourself then you can revert it to another person that your employee, who is experienced and can handle such tasks as well.

Either way, whether you are handling it yourself or giving it to someone else to manage, you have to be able to understand some of the basic financial statement to ensure that you stay up to date with how your business is progressing. The three financial statements that I believe that you need to be versed in are:
1. The balance sheet - this shows yoru assets and liabilities of the business and ensures that there are no discrepancies
2. The income statement showing the expenses and the income of the business
3. The cash flow projection to show how cash is coming into and being spent from the business and may include future predictions as well.

Are there are other financial statements or requirements that you feel that an owner should be well versed in?

Nice and well stated write up. Starting a business is not as difficult as maintaining such business and make profits from such business. That's what people need to know.

 

[Ehizzy1]

Nice and well stated write up. Starting a business is not as difficult as maintaining such business and make profits from such business. That's what people need to know.

I think starting a business and maintaining a business are two different things and the operation of both could be very difficult for the owner

 

[abubakar3141]

We hope that, so far, we've made at least one thing clear: If you're in business, you need to understand financial statements.

 

[Muhammad Arslan]

A balance sheet shows a company's "book value." It enables you to see what services are available and how they were funded as of a certain date. It displays the company's assets, liabilities, and equity (essentially, what it owes, owns, and the amount invested by shareholders).

 

[Kingsley]

There are certain documents that at business must understand fully one of which Include the cash flow statement this will show how the financial resource are no in and out the business and the comprehensive Income statement or trading, profit or loss statement then finally the balance sheet.

 

[Georgeadawara]

Keeping a good financial records is a good idea in time of business it is good to know the inan out of any money in your business and keeping the record can give you the overview of how good is business doing. And that can bring trust in every thing you are doing.

 

[Ehizzy1]

There are certain documents that at business must understand fully one of which Include the cash flow statement this will show how the financial resource are no in and out the business and the comprehensive Income statement or trading, profit or loss statement then finally the balance sheet.

Yeah the cash flow system is another part too and also it lets you know the input and inflow of money into your business