Understanding your profit and loss statement

Understanding your profit and loss statement Your profit and loss statement (P&L) helps you understand your business performance and profitability over time. It’s sometimes called an Income statement and its main purpose is to list income and expenditure.  Whereas a balance sheet is a snapshot in time, the P&L shows transactions over a specific period of time. […]

Understanding Statement of Cash flow

Understanding statement of cash flow Revenue is vanity, profits are sanity, but cash is king – or so the saying goes. That’s because cash is what customers pay in, and what shareholders get as a dividend.  So, you must want to know more about the impact of your business activities on your cash flow?   Understanding Your Statement of […]

How financial Ratios will tell you if your business has solid foundations (and how to read a balance sheet)

How financial ratios will help you build solid foundations for your business. As a business owner you will own lots of assets, owe other businesses money and have shareholders. The balance sheet brings all these together in a financial snapshot showing the businesses financial position at a specific point in time. Together with the Profit and Loss Statement, and Statement of Cash-flow, […]