LivePlan provides the three standard financial statements that accountants an investors generally expect to see: the profit and loss (P&L) statement, cash flow statement, and the balance sheet. Using the numbers you enter into your forecast, LivePlan builds these financial statements automatically for you:
- Profit and loss (P&L) statement: A profit and loss statement is essentially an explanation of how your business made a profit (or incurred a loss) over a certain period of time. It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss.
- Cash flow statement: A cash flow statement (also called a “statement of cash flows”) is an explanation of how much cash your business brought in, how much cash it paid out, and what its ending cash balance was, typically per-month.
- 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?
The articles in this section explain the financial statements in detail.