Critical Info for a Business Owner!
As a business owner, it is critical to understand your numbers because without, you may be running your business blindfolded. Do you understand the financials that your accountant is providing to you? What exactly is the difference between a profit & loss and a balance sheet? The profit & loss or also known as the income statement is a report that assesses the financial performance over a certain period of time. This report shows the revenue earned and the costs/expenses incurred for a specific time period. The balance sheet, on the other hand, shows the financial position at a specific point in time. This report is very different from an income statement as it reports the assets, liabilities, and shareholders' equity to determine how well management puts its resources to work. Want to find out more or have more questions, you can always reach us at 832 295 3353. #Accounting #Finance #CPA