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Writer's pictureEvan Kirkpatrick

Why Understanding Financial Statements Is Essential for Growing Your Business

Updated: Aug 14, 2020



If you’re a business owner, hopefully, you have a goal and a purpose for why you became an entrepreneur. Cash flow is vital to achieving those goals, and the gateway to getting cash flow is through the numbers. Your financial statements will help you know if your business has its act together, or if it's time to kick things up a notch.

Financial statements are the primary reason that the concept of accounting even exists. We need them to file tax returns, get loans, and to get outside investors. But more than anything else, financial information lets you, as the owner, manager, earth mover, and decision maker, understand where your business is at and how to lead it to success.


Managing your business by how much cash you have in the bank will only get you so far. The amount of money you have today doesn't tell you how you got to where you are. It also doesn't tell you how to get more money in the future. With good financial statements and a real understanding of where your business is truly at, you won’t spend too much money when you have it and not spend enough when you don't. The financials give us the gateway to understand what your business is truly doing.


You can never have too much financial knowledge. We can help you to access that knowledge and make the best business decisions.

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