The financial statements that you must understand in your business

[Kelly5]

It is very important to understand your business assets and liabilities so as not to be caught off guard. Your income and expenditures must also be very clear and understandable too

 

[Bookwormlux]

Ability to be disciplined when dealing on finance, and never spend lavishly. Instead investing it wisely and never over spend money when it isn't needful.

That is a crucial aspect too and so many people do not have this sense of discipline, so they lose their earninngs easily to liabilities.

 

[GIFTMICHAEL]

That is a crucial aspect too and so many people do not have this sense of discipline, so they lose their earninngs easily to liabilities.

That's whst we're simply saying, instead of cultivating that sense of discipline spend less on wants and more in business progress and savings.

 

[Chibson]

It is very important to understand some financial statements and it is always important to seek knowledge before venturing into business because there are some certain things we need to have little knowledge about at least like bookkeeping and others.

 

[delnovem]

Financial statements are written records that convey the business activities and the financial performance of a company. The balance sheet provides an overview of assets, liabilities, and stockholders' equity as a snapshot in time.

 

[Yusuf]

As a business owner you should be able to understand the ur of cashflow in Business. This is very important because it will help you know how money is going out and coming in into your business and you will be to know your profit and loss

 

[Richard92]

But it is that much difficult also to manage business. Some people even hire others for this managerial task with higher qualification. Even such degrees are provided by universities which specially deals with management.

The financial statement that you must understand in your business is when you are making profit because there is no business man that will understand financial statements that involve loss.

 

[Ralphjoe]

Indeed I think it is important to have a proper financial statement and also the ability to read and interpret. Another thing is to keep a detailed log of all the transactions, income and expenses accrued over the working days.

The knowledge of the financial aspect of your business is very key in a situation whereby you are having issues with the business finance. It is also good for you to employ a good financial accountant to manage your business but in a situation whereby the business is a small business you will need to be managing the finance of your business yourself to avoid a situation whereby a financial accountant can defraud you.

 

[skyliequiz]

The Income statement, which shows the company's net income during a specified period, and the Balance sheet, which shows the company's assets, liabilities, and net worth on a specified date

 

[Nurudeen]

Knowing and understanding the cash flow of business is very important because this will help you know the amount of money you are spending and the amount of money you are generating into your company

 

[Kaffyfolla]

Keeping the financial records of the business is very essential, if the records of the business is handle by the professional with transparency, the business may likely wind up or go bankrupt, it is the business records that would let you know whether you have ascertained profit or the lost has been incurred

 

[BrolySSJ]

Keeping the financial records of the business is very essential, if the records of the business is handle by the professional with transparency, the business may likely wind up or go bankrupt, it is the business records that would let you know whether you have ascertained profit or the lost has been incurred

This is a good point, however it is not just for this case but also is needed in the cases where you are trying to get investors into your business as well, because they would need to see these statements in order to make their decision moving forward.

 

[Bousine123]

I think the income statement should be more important to the business person there. Without it you won't be able to know where you are loosing or gaining.

 

[BrolySSJ]

I think the income statement should be more important to the business person there. Without it you won't be able to know where you are loosing or gaining.

It is a very important financial indicator however you also have to account for the balance sheet because that will show you what assets you have and what liabilities you still have to pay off.

 

[Setfragil]

The financial statement of a business that you must understand is the sale account. You need to understand the profits and losses of the business perfectly somas to know when the business is making profits and when the business is losing.

 

[Richard92]

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.

The new business one of the financial statement that you must understand his statement has to do with sales and profit you must also know how to minus expenses from your gross profit to get your net profit.

 

[tuna89]

Great information, learn a lot, without the financial statements, one may not know the inflow and outflow of funds and products and this can in turn kill the business. The financial information enables you to plan ahead with respect to the info therein

 

[BrolySSJ]

Great information, learn a lot, without the financial statements, one may not know the inflow and outflow of funds and products and this can in turn kill the business. The financial information enables you to plan ahead with respect to the info therein

This is completely true, and what is also evident from the financial statements is the financial obligations that the company has as well and this will be key in trying to develop the market in the business and what they still owe to other companies.

 

[Ezekiel]

Business does not just work on production and profiting, otherwise you will keep on making profit at the long run you won't see the profit because you had fail to make record of you expensive,so the credit and debit statement must be intact

 

[BrolySSJ]

Business does not just work on production and profiting, otherwise you will keep on making profit at the long run you won't see the profit because you had fail to make record of you expensive,so the credit and debit statement must be intact

I do completely agree with you and also when it comes to financial statements it is a legal requirement of a business because if you are audited you have to be able to present them with the necessary financial documents.