Financial Statements
The financial statements are the backbone of your business plan.
Feb 01, 2002
They show how profitable your business will be in the short andlong term, and should include the following:
- The income statement details the business’scash-generating ability. It projects such items as revenue,expenses, capital (in the form of depreciation) and cost ofgoods.
- Cash flow statement details the amount of money cominginto and going out of the business-monthly for the first year andquarterly for each year thereafter. The result is a profit or lossat the end of the period represented by each column.
- The Balance sheet paints a picture of the business’sfinancial strength in terms of assets, liabilities and equity overa set period. You should generate a balance sheet for each yearprofiled in the development of your business.
Excerpted from Start Your Own Business: The Only Start-Up GuideYou’ll Ever Need
They show how profitable your business will be in the short andlong term, and should include the following:
- The income statement details the business’scash-generating ability. It projects such items as revenue,expenses, capital (in the form of depreciation) and cost ofgoods.
- Cash flow statement details the amount of money cominginto and going out of the business-monthly for the first year andquarterly for each year thereafter. The result is a profit or lossat the end of the period represented by each column.
- The Balance sheet paints a picture of the business’sfinancial strength in terms of assets, liabilities and equity overa set period. You should generate a balance sheet for each yearprofiled in the development of your business.
Excerpted from Start Your Own Business: The Only Start-Up GuideYou’ll Ever Need
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