Inspection and evaluation of accounts by a second set of accountants
What are the three basic financial statements that you need to understand to run your business?
The first of these forms is the Balance Sheet. It is a comparison of your assets (things that make you money) on the left, and liabilities (things that you owe) and equity (the net worth of your business).
The cash flow statement is the third financial form that you should prepare on a regular basis, at least weekly.
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.
The balance sheet must follow the following formula: Assets = Liabilities + Shareholders' Equity