Financial documents, or financial statements, are used to determine the financial health and performance of your company. In business, there are three financial reports that are the most useful: the balance sheet, the cash flow statement, and the income statement. Do you know the difference?
Balance sheet: This report shows the company's assets and liabilities at a specific point in time.
Cash flow statement: This report shows how cash enters and leaves the company.
Income statement: This report, also known as the Profit & Loss Statement (or P&L Statement), shows the company's revenues and expenses over a specific period.