Financial statements are like the financial dashboard of your business. They tell you where your money is going, where it’s coming from, and how much you’ve got to work with. They’re super helpful for making smart business moves.

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Below, six members of Wichita Business Journal Leadership Trust share strategies that help them and their team members.

We help small business owners get a better understanding of their financials so that. Maine SBDC has downloadable financial statement templates including a .

Financial Statements for a Small Business – Basic Accounting Help – The financial statements for a small business are the maps of your business. They show where you have been, where you are right now, and where you are going. There are three main reports that make up financial statements for a small business. Profit and Loss Statement

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Therefore, how to use the information obtained from your financial statements to make better business decisions begins with understanding of the main three financial reports used. The three financial reports that are usually used to make a business decision are the Balance Sheet, Income Statement, and Cash Flow statement.

In fact, most businesses today have automated accounting systems. Financial statements can be prepared with a few clicks of a button. However, as accountants, we need to know how they work and, you know, make it a part of our system. This way, we will also be able to understand and interpret financial statements better.

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Financial statements are also used by various executive members of the company to make decisions on various company policies and the direction of the business. Individuals make use of financial statements to calculate their net worth and to make various important life decisions.

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If your business is still more of a side hustle, or if its finances are simple, you likely can skip enlisting the help of a CPA for now. There are plenty of small-business finance resources online you can reference. But if your small business starts overshadowing your day job, talking to a CPA is highly recommend to make sure you’re on track.