Financial statements in management

Every professional manager must have these three basic financial statements:

- Balance Sheet: shows the financial strength of your business at that point in time in terms of assets and liabilities.

- Profit and Loss (P&L) statement (also called the Operating Statement): shows the month-to-month operating elements of your business, including revenue and expenses.

- Cash Flow Statement: presents the cash management and requirements of your business.

Each of these reports delivers a different perspective on the financial activity and strength of the company, but it is also important to understand their relationship to each other.