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When it comes to managing your business’s finances, understanding the three major financial statements is crucial. These statements provide valuable insights into your company’s financial performance, position, and cash flow. Let’s explore each of these statements in more detail.

#1. The Balance Sheet

The balance sheet provides a snapshot of your business’s financial position at a specific point in time. It includes your assets (what your business owns), liabilities (what your business owes), and shareholders’ equity (the ownership interest in the business). By comparing assets to liabilities, you can determine your company’s net worth. The balance sheet is vital for assessing your business’s liquidity, solvency, and ability to meet financial obligations.<