#financial-statements
Financial Statements
Understand and prepare balance sheets, income statements, and cash flow reports
Profit and Loss Statement: What It Is, How to Read and Create One
Learn what a profit and loss statement is, how to read and create one for your small business, understand the difference between single-step and multi-step formats, calculate key profitability ratios, and avoid common P&L mistakes that could be costing you money.
Return on Assets (ROA): What It Is, How to Calculate It, and How to Improve It
Learn what Return on Assets (ROA) is, how to calculate it step by step, what constitutes a good ROA by industry, how ROA compares to ROE and ROIC, and six proven strategies to improve your ROA.
SG&A Expenses: What They Are, How to Calculate Them, and Why They Matter
Learn what SG&A (Selling, General & Administrative) expenses are, how to calculate the SG&A ratio, industry benchmarks, and practical strategies to reduce overhead and improve profitability.
Statement of Retained Earnings: What It Is, How to Prepare One, and Why It Matters
Learn what a statement of retained earnings is, how to prepare one step by step, understand the retained earnings formula, calculate the retention ratio, avoid common mistakes like confusing retained earnings with cash, and know what negative retained earnings mean for your business.
Working Capital: What It Is, How to Calculate It, and How to Manage It
Learn what working capital is, how to calculate the working capital ratio, understand the cash conversion cycle, identify when negative working capital is a problem, and discover seven strategies to improve your working capital and keep your business financially healthy.
Assets, Liabilities, and Equity: The Accounting Equation Explained
Learn what assets, liabilities, and equity are, how the accounting equation (Assets = Liabilities + Equity) works with real examples, types of each category, key financial ratios, and common mistakes to avoid.
Balance Sheet vs. Income Statement: Key Differences Every Business Owner Should Know
Understand the key differences between a balance sheet and an income statement, how they connect, essential ratios like ROA and ROE that bridge both, common mistakes to avoid, and when to use each statement for smarter business decisions.
Balance Sheet: What It Is, How to Read One, and How to Create Your Own
Learn what a balance sheet is, how to read and analyze one, the accounting equation (Assets = Liabilities + Equity), four essential ratios, common mistakes to avoid, and step-by-step instructions to create your own.
Balance Sheet: What It Is, How to Read One, and Why It Matters
Learn what a balance sheet is, how to read one, and why it matters for your business. Includes a practical example, key financial ratios (current ratio, quick ratio, debt-to-equity), common mistakes to avoid, and tips for regular balance sheet review.
Chart of Accounts: What It Is and How to Set One Up for Your Business
Learn what a chart of accounts is, how to set one up with proper numbering and categories, and best practices for organizing your business finances. Includes examples for assets, liabilities, equity, revenue, and expenses, plus common mistakes to avoid.
FASB: What It Is and Why It Matters for Your Business
Learn what FASB (Financial Accounting Standards Board) is, how it sets U.S. accounting standards (GAAP), its standard-setting process, key standards like ASC 606 and ASC 842, and why it matters for small and private businesses.
Financial Literacy for Small Business Owners: The Essential Skills You Need to Succeed
Learn the essential financial literacy skills every small business owner needs, from reading financial statements and managing cash flow to budgeting, tax planning, and avoiding the most common financial mistakes that cost businesses thousands.