What type of financial statements should I keep?

Financial statements are an important part of running a small business. In Delaware, as a small business owner you should keep three types of financial statements: an income statement, a balance sheet, and a cash flow statement. An income statement is a report of the profits and losses of your business over a specific period of time. It lists your revenue from sales and other sources and expenses related to your operations. This allows you to track the financial performance of your business and make informed decisions about where to allocate resources. A balance sheet is a statement that details the financial position of your business. It shows assets, liabilities, and equity. Assets are things you own like cash, inventory, and land. Liabilities are debt, like loans and accounts payable. Equity is the difference between assets and liabilities and includes owner investments and retained earnings. A cash flow statement is a report of all the cash that flows in and out of your business. This includes money from sales, taxes, investments, and loans. It also shows money spent on inventory, payroll, rent, and other expenses. It provides information on how the money is being invested in the business and what the operating activity is like. By keeping these three financial statements, you can create a comprehensive financial picture of your Delaware small business and make sound decisions about where to allocate resources.

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What type of financial statements should I keep?

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