These seven financial resources in a business are hard to understand because they are so important. The seven financial resources in a small business include cash flow, inventory, accounts receivable, accounts payable, equity, debt, and taxes.
Cash Flow Statement
A cash flow statement shows how much money comes into and goes out of a company each month. It also shows whether the company has enough money to cover its expenses.
Balance Sheet
A balance sheet is a snapshot of a company's assets (like land, buildings, equipment) and liabilities (like loans). It shows what the company owns and owes at any given moment.
Income Statement
An income statement is a report that shows how much money a company has earned during a certain period of time. A balance sheet is similar, except it also shows what the company owes.
Profit & Loss Statement
The profit and loss statement (P&L) is one of the most important reports in any business. It tells you how well the company is doing financially. You should use it to make sure that the company is making enough money to pay its bills and keep its employees happy.
Debtors & Creditors Report
This report shows you who owes what to whom. If you see a large number of creditors, you might need to find out why.
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