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James Lavud

What financial reports I need for the development of small business?


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You should prepare and understand three basic financial statements:

  1. The balance sheet, which is a record of assets, liabilities, and capital at a specific point in time;
  2. The income (profit and loss) statement, which is a summary of your earnings, expenses and net profit (or loss) over a given period of time; and
  3. The cash flow projection, which shows the actual inflows and actual outflows of cash into and out of your business.

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