What do photography and business financial statements have in common? Each captures an image; landscapes for digital artists and financial landscapes for business executives.
Financial statements are either snapshots or time lapsed accounting images. The balance sheet captures a moment in time during the accounting cycle, usually the end of the month, quarter or fiscal year. Assets (i.e. current, liquid, illiquid, fixed, intangibles, etc.), Liabilities (i.e. current, short-term, long-term, etc.), and owner equity (i.e. retained earnings, initial investment, additional capital, etc.) accounts show the balance at the end of the accounting period.
The income statement and cash flow statement show all activity during a period of time whether a month, quarter, year or some other time period. A sort of time lapsed photographic image of an accounting cycle.
Get to know your financial images and appreciate the beauty of your balance sheet, income statement and cash flow statement.
- How to Clean Up Your Financial Records and Polish Your Business (proborrower.wordpress.com)
- Three Financial Guesstimates Every Business Plan Needs (entrepreneur.com)
- Financial Statements (blogs.forbes.com)