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In the world of business and management accounts, there are three critical financial statements: profit and loss (or income) statement, cash flow statement, and balance sheet. Together these documents provide valuable numbers that will help you track your company’s performance over time and give a snapshot into how successful or not it is doing financially at any given moment in time.
ReplyDeleteNumbers can represent many things, but they always tell the story of what’s going on with your business. And these data point to some significant trends: You’re growing steadily and consistently meet all forecasts – even those that were too optimistic. These numbers show us something new; how we spend our money matters both in terms of costs versus revenue and which areas need improvement if anything else is changed about them financially or otherwise.
Management accounts!