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For Business Owners ！ The Importance of Financial Statements and Accounting Bookkeeping

For business owners operating in the U.S., an accurate understanding of their company's financial condition is an essential component of their business strategy. In particular, the Balance Sheet （ Balance Sheet ）, Income Statement （ Income Statement ）, and Cash Flow Statement （ Cash Flow Statement ） are important indicators of the health of the business . This article explains the role of these financial statements and why daily accounting entries are important. In addition, we will discuss the relevance and differences between the financial statements and the end-of-year corporate tax returns (LLC, S-Corp, C-Corp, and Partnership).

What are Financial Statements
The primary financial statements, the balance sheet, income statement, and statement of cash flows, each contain different information and provide important measures of the health of the business along with the time period each document represents.

Balance Sheet （ Balance Sheet ）

Main accounts:
Assets ： Cash, accounts receivable, inventory, fixed assets, etc.
Liabilities ： Accounts payable, debt, taxes payable, etc. Shareholders' equity ： Share capital, retained earnings, profit carried forward, etc.

↓ To be continued ！
https://www.hkstanfield.com/blog/ financialstatements/