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Understanding financial statements

Balance sheets and income statements are checks that tell you about the health of your business and are used to keep track of your finances. They are used to manage your operations and provide information that you and your accountant may need to make important financial decisions and formulate effective business strategies.

A balance sheet tells you about the net worth of your business at any given point in time. It includes information on your assets or your worth in declining order of liquidity (the commitment, liabilities or money you owe others) and the owner

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