Finances can be daunting to even the savviest entrepreneurs. Luckily, there’s a way to simply and strategically attack this fear. Instead of fixating on the overwhelming stack of bills, financial statements and invoices, you can make informed decisions about your business with just three financial reports.
I’m not saying you should ignore everything else, but these reports are a great foundation for a financially successful small business.
The three most important financial reports are your Income Statement, Balance Sheet and Cash-Flow Statement.
Financial Reports Need Data
You can learn a great deal about the health of your business by reading and evaluating the information from your financial reports. Having this information allows you to make sound business decisions based on facts and it can protect you from fraud.
If you wait to review your financial statements with your accountant once a year you lose the opportunity to improve your position.
This is not true however if your data entry is not up-to-date. If you have incorrect or incomplete data, these reports are useless. So be sure to have all information entered correctly and then consistently review these three reports.
You are capable of creating a financially strong company!
Your Financial System
By reviewing these financial reports, you create a reliable system that empowers you and your business.
What’s your experience handling the finances of your company? I want to hear from you in the comments!
Enjoy your Entrepreneurial Journey!