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This financial management infographic is a visual guide to your business financial statement. It was created by Jennifer Gueringer from The Business Backer.
Scary words seem to come in threes.
‘I love you’ takes more guts to say to than a full-on public address.
‘Rest In Peace’ is something you don’t want to hear too often.
But perhaps most frightening of all for many entrepreneurs are those three little words: Business Financial Statement.
There are many reasons why you might be asked to provide this snapshot of your company’s economic health and prospects.
Maybe you’re looking for a bank loan to expand, a merger with a like-minded business, or you just want to get the picture clear in your own mind so you know how to plan for the future.
Either way, the thought of sitting with a spreadsheet, formatting those figures, and looking into the dark heart of your company’s losses and gains is understandably disturbing.
You can make the process a lot easier on yourself by learning to do it well. Nothing makes a horrid task less repellent than knowing you can do it as quickly and effectively as anyone else.
Look into the fundamentals. A good business statement is made up of a balance sheet, an income statement, and a cash flow statement.
The balance sheet is a list of your assets and liabilities.
It gives readers an idea of the overall scale of your company. The income statement shows what’s come in, and how it balances against what’s going out. It shows how profitable you are.
The cash flow statement is a shorter-term version of this – it gives a picture of where the company stands today, and over the past few months.
This simple new visual guide breaks down the whole document into easy to handle sections.
Take it one step at a time, and you are sure to get through it without any disasters. And next time around, you’ll have the confidence to leap in with both feet!
Tip: Don’t forget to take a look at our Financial Statement Analysis (FSA) article.
Highlights of this Financial Statement infographic:
- Financial statements for every business are a crucial must have.
- Each component has its important values.
- There are both short-term and long-term components.
- And more..
For more information about the contents of a business financial statement, study the article published by The Business Backer.
This infographic was created by Jennifer Gueringer from The Business Backer.
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