We all know that financial statements are a necessity of running and managing any business or organization where money flows in and/or out. It's required for tax purposes, yes, but looking at your business through pure numbers can help you analyze how your business is changing. Monitoring statements can help you stop a problem before it runs you out of business, it can help you find an opportunity that will allow your business to grow, or it can show you that your business is staying flat or not changing at all, which can be bad or good.
In this chapter, we will build the following core financial statements:
Balance sheet
Profit and loss statement