01 Aug What Are Financial Reports?
Financial reports tell the story of your firm. Think of each report as a storyteller. The accuracy by which they tell your story is based on the accuracy of your recordkeeping.
The three primary storytellers are the Income Statement (also called the Profit & Loss), the Balance Sheet and the Cash Flow Statement. Individually they can only tell part of the story, together they tell a complete story.
There are also a variety of other reports; for instance productivity reports, client ledger reports, and accounts receivable reports management should regularly review.
So when asked for your financial reports, remember they want to hear your firms story as told by your Income Statement, Balance Sheet, and Cash Flow Statement.