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Your financial reports tell you everything you need to know about your business - but do you know what they’re saying? Or what all the little pieces mean?

Financial reports are a compilation of all the numbers floating around your company. There’s your Balance Sheet, which supplies you with a detailed look at your company’s financial health at any particular moment in time. It gives you the dollar amount of assets and liabilities in your company’s net worth. This includes fixed assets, inventory, cash, accounts payable and receivable, payroll liabilities, line of credit, and more. The Balance Sheet also tells you the equity in the business.

No matter what kind of business you own or you’re a part of, it’s important that we all utilize the same resource that is here to help us all—America’s Small Business Development Center (SBDC). Michigan’s SBDC is headquartered in Grand Rapids but have over ten different locations throughout the state. They have helped over 5,500 businesses across Michigan and helped start 445 businesses in 2016. Their main goal is to help us - if you haven’t looked into the SBDC, now is the time.

Accounting and bookkeeping are both essential components to every business, no matter the size. They are services necessary for businesses to grow, thrive, and survive. But, what’s the difference between them? Although accounting and bookkeeping share similar goals, they each help you during different stages of your financial cycle.