Bob GauvreauAsk Bob Gauvreau Questions Based On His Training

Discover the Power of Financial Statements #shorts

25 Jul 2023 · 1 min

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A short YouTube clip by Bob Gauvreau explaining the four primary financial statements: the balance sheet (assets and liabilities at a point in time), the profit & loss/income statement (performance over a period), the statement of cash flows (cash movements), and the statement of retained earnings/equity. The speaker emphasizes reviewing the profit & loss over time and that these reports—often prepared by accountants or produced in bookkeeping software—offer important business insights.

Chapters

Financial statements are essentially a package of different reports that are typically accountant prepared. It can be inside Your, let's say QuickBooks Online or your bookkeeping software. The balance sheet shows you your assets and liabilities as of a certain date. The next report would be the profit and loss. So the statement of income that's over a period of time. The third main one that we really love, and I think it's the most important one altogether, is a statement of cash flows. Looks at essentially your income that's being reported on a profit and loss. And then the last one, not including notes or disclosures, would be the statement of retained earnings. Statement of equity, statement of partnership equity, statement of owner's equity. One of our favorite reports is looking at a profit and loss statement over a period of time. The better you understand how these financial statements work, the more insights you'll get into your business.