4 Types of Financial Statements That Every Business Needs
If you're a small business owner, you may be thinking that your accountant whether full time or part time is the only person who could possibly be interested in your business's financial statements. But if you're looking for investors for your business, or want to apply for credit, you'll find that four types of financial statements—the balance sheet, the income statement, the cash flow statement, and the statement of owner's equity—can be crucial in helping you meet your financing goals. Understanding Financial Statements It's important for the small business owner to understand these four types of financial statements and the information they provide for the investor or creditor interested in providing funds for your business. Both individually and taken together, these financial statements give a potential investor or creditor a wealth of information and can have a serious impact on your business's ability to obtain the funds or financing it needs. 1. B...