A profit and loss statement is a summary of the financial performance of a business over a period of time – this could be monthly, quarterly, or annually. It reflects your business’s past performance and can help you track how your business is performing. It can highlight where your business is succeeding and where it […]

A cash flow statement shows how much cash is moving in and out of your business over a certain period of time. It reflects your business’s liquidity. Having the available cash to pay your debts and buy materials and assets are an important part of planning your business. The most crucial number of your cash […]

These are the financial obligations that your business is required to pay. In simpler terms, this is what you owe external parties or businesses. For example if you acquired a bank loan for your business, what you owe your bank is a liability. Current Liabilities – These are the things you expect to pay within […]

This is what your company owns. Assets include the resources and capital that you have acquired through transactions and that have future economic value. For example, if you own a massage business examples of an asset would be the massage table you use. This table helps you provide the product/service you sell, and can be […]

A balance sheet is a good way to see the big picture of your business’s financial health. It shows a summary of your business’s financial position at a particular point in time. By understanding the numbers in a balance sheet you will be able to identify the strengths and capabilities of your business. The balance […]

Accounting provides data which is used as a way of understanding or visualising the effects of business activities. By understanding and using the numbers you get through correct bookkeeping and accounting, you will be able to make decisions about which activities you should involve yourself in more to get the results you desire. The trouble […]