Every fiscal quarter and fiscal year, most companies will issue three financial reports: a profit & loss statement, a balance sheet, and a cash flow statement. Used together, these three reports will present an in-depth look at your company’s financial health. Keeping your financial reports accurate and organized is an essential process and can directly influence your business growth and success.

Profit & Loss Statements

Budget planning or income management, spending and expense report or investment balance sheet, debt calculation and analysis, businessman with magnifier planning budget with calculator and chart.

The statement that summarizes your business’s revenue, costs, and expenses during a month, fiscal quarter, or fiscal year is your profit and loss statement. This statement can be issued at regular intervals to demonstrate the financial health of your company. From your profit and loss statement, you can see all of the information about your ability to generate profit and manage costs over a set period of time.

Profit and loss statement statements are important because changes in revenue, operating expenses, research and development spending, and net earnings are all part of the big picture. Having an accurate vantage point that encompassess both profits and losses is essential. You may see your overall revenue growing, which may be reflected in a balance sheet, but if expenses are outpacing that growth, your company may not be as financially healthy as you thought.

The accuracy of your profit and loss statement is fundamental to understanding your company’s overall financial health. In Balance Bookkeeping Solutions can help you organize, update, and understand your profit and loss statement so you can set attainable goals and grow your business.