What is a financial statement & balance sheet?

Each of the financial statements provides important financial information for both internal and external stakeholders of a company. The income statement illustrates the profitability of a company under accrual accounting rules. The balance sheet shows a company’s assets, liabilities, and shareholders’ equity at a particular point in time.

What is a balance sheet & income statement?

The balance sheet and the income statement are two of the three major financial statements that small businesses prepare to report on their financial performance, along with the cash flow statement. With FreshBooks, you don’t need to become an accountant overnight to run your business the way it deserves.

What is a balance sheet in accounting?

What is a balance sheet? A balance sheet shows the financial position of the business at a specific point in time. The balance sheet is the cornerstone of a company’s financial statements, providing a snapshot of its financial position at a certain point in time.