LivePlan provides the three standard financial statements that accountants and investors generally expect to see. Using the numbers you enter into your forecast, LivePlan builds these financial statements automatically for you:
- Profit and loss (P and L) statement: A profit and loss statement explains how your business made a profit (or incurred a loss) over a certain period of time. This statement focuses on money you earned selling products or services, and money you spent to run your business.
- Cash flow statement: A cash flow statement explains how much cash your business brought in, how much cash it paid out, and what its ending cash balance was each month. The cash flow is a report of changes, not totals, so negative numbers in this report only represent decreases, and not necessarily losses.
- Balance sheet: Your balance sheet is a snapshot of your business’s financial position—at a particular moment in time, how are you doing? How much cash do you have in the bank, how much do your customers owe you, and how much do you owe your vendors?
It's helpful to understand that these three statements work together to create a complete picture of your business.
These articles explain the financial statements in more detail: