However, one thing always remains the same: income statements begin with sales and end with net income or loss. Income statement formats vary from business to business. Your income statement can give you a lot of must-have information about your business’s financial status. Your business’s bottom line (aka the last line of your income statement) shows you whether you have a net income or loss during a specific time frame. Use your income statement to see how profitable your business is. You can use an income statement to look at your profits and losses on a weekly, monthly, quarterly, or annual basis. Your income statement shows you your income and expenses. Take a look-see at the different types of financial statements below.Īn income statement, also known as a profit and loss (P&L) statement, shows you your business’s profits and losses over a certain period of time. That way, you know which statements to have handy and what to look for on each of them. There are four types of financial statements:Īs a business owner, you must learn the difference between the various accounting financial statements. Each type of financial statement gives you insight into different information. Your financial statements list things like your expenses and income as well as transaction totals. Not to mention, you can use statements to organize financial information and come up with a game plan for your business’s financial future. You can use your financial statements to get a snapshot of your business’s financial health. But to keep your finances organized, you have to know about the four basic financial statements and how you can use them to grow your small business.Ī financial statement is chock-full of your company’s financial information. If you’re a small business owner, you know how important it is to keep your financial information in order.
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