Financial statements are not just a report for the accountant; they are the dashboard that shows you where your business stands. And understanding them does not require you to be an accountant.
Three statements, three questions
- Income statement: Am I making a profit? And where does it come from?
- Statement of financial position: What do I own, and what do I owe?
- Cash flow statement: Where did the cash actually go?
Indicators worth tracking
Gross profit margin, average collection period and the liquidity ratio. Three numbers that reveal a lot about the health of your business.
Profit on paper does not pay salaries… cash does.
If you would like to read your statements with a consultant, contact the SAMAD team.