There are three main financial statements that you need to assess the performance and financial state of your business. They are:

• The Income Statement
  
  
• The Balance Sheet
  
  
• The Cash Flow Statement
  

These are also called accounting statements, and in fact are financial accounting tools. By understanding how to use and interpret these statements, you will be able to assess the financial structure of your business, specifically its cash and debt situation, as well as its profitability.

The Cheap Guy - Financial Advice