ProjectionHub

Revenue, expenses, assets, and liabilities are the key financial components of your business. Knowing how they work together is critical to your success. The Income Statement Your income statement shows your revenue and expenses over a period of time, usually a month or a year. It is one of the most important financial statements because it shows whether your business is making money or losing money. The Cash Flow Statement Your cash flow statement shows how much cash is coming in and going out of your business. It is important to track your cash flow so that you can see whether you have enough money to pay your bills. The Balance Sheet Your balance sheet shows your assets and liabilities. Assets are things that your business owns, such as cash, equipment, and inventory. Liabilities are things that your business owes, such as money owed to suppliers and loans.