Financial Statements

The three main financial statements are the income statement, balance sheet, and cash flow statement.

📄️ Cashflow

Provides a detailed analysis of how a company manages its cash.

📄️ DCF

How would you validate the future value of time, effort and risk if you could not use money as a barometer of sucesss?

📄️ Ledger

Value In vs Value Out.

📄️ Transactions

A payment rail is a platform or network that moves money from a payer to a payee. Either party could be a consumer or business, and both parties are able to move funds on the network.

Primary

• Profit and Loss: Profitability.
• Balance Sheet: Financial position.
• Cash Flow: Liquidity

Supporting

• Statement of Changes in Equity: This shows changes in the owners' investment in the company over a period of time.
• Budgets and Forecasts: Projections to guide strategic financial decisions.
• Invoices and Receipts: Essential for tracking revenue and expenditures.

Ledger

This is a record of all the company's financial transactions, organized into different accounts based on the type of transaction (e.g., sales, purchases, payroll).

Bank Statements

These are records of all the company's bank transactions, including deposits, withdrawals, and any fees or interest.

Insurance Policies

Businesses should keep copies of all their insurance policies, as well as any claims they have made.