What type of financial statements should I keep?

If you own a small business in Minnesota, it is important to keep accurate financial statements to help you understand the financial health of your business. There are four main types of financial statements that you should keep. The first type of financial statement is a balance sheet. This document outlines the financial position of your business at a certain point in time. It shows your assets (what you own), liabilities (what you owe), and equity (the difference between assets and liabilities). Second, you should create an income statement to track the money that comes in and goes out of your business. It shows your revenue (sales) and costs (expenses), so you can track both your income and losses. Third, you should create a statement of cash flows. This statement shows you when money enters and leaves the company. It helps you identify cash flow problems and manage cash flow more efficiently. Finally, you should maintain a statement of changes in equity. This statement tracks changes in your equity, such as changes in share capital, retained earnings, and any dividends that are paid out. This statement helps you understand how your equity has changed over time. Keeping accurate financial statements is important for all small business owners in Minnesota. It will help you to understand the financial health of your business and make better business decisions.

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What type of financial statements should I keep?

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