How do I understand my bookkeeping reports?
Think of your bookkeeping reports like this:
The income statement reports your business's revenue and expenses and gives you your "bottom line." This report helps you see if your business is making money or not and can reveal to you areas for change or improvement depending on your business goals.
The balance sheet shows you what your business owns (its assets), what it owes (any liabilities), and the difference between them (your owner's equity). This report gives you a snapshot of your business's financial position at a specific point in time.
When reviewing your bookkeeping reports, focus on understanding the big picture of your business's financial health, identifying trends or patterns, and pinpointing areas that need attention or improvement. Your dedicated Vyde guide can walk you through these reports and help grow your understanding!
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