What type of financial statements should I keep?

When running a small business in New Mexico, it is important to keep up with your finances. Two of the most important financial statements to keep up-to-date are the balance sheet and the income statement. The balance sheet shows the financial position of the business at a certain point in time. It includes information about assets, liabilities, and the owner’s equity. Assets are what the business owns and can be converted to cash; liabilities are what the business owes to others; and the owner’s equity represents the owner’s share of the business. The income statement shows the business’s financial performance over a certain period of time. It includes information about revenue, expenses, and net income. Revenue is the money the business earns; expenses are what the business pays out; and net income is the difference between revenue and expenses. By keeping both the balance sheet and the income statement up-to-date, a business can get a better understanding of where its finances are currently and how they have been doing over time. It’s important to make sure to record all transactions in these statements and to review them regularly. This will help you to better manage your finances and keep your business running smoothly.

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What type of financial statements should I keep?

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