Financial Reporting Importance

Assets = Liabilities + Equity

The golden rule of accounting.

Have you ever looked at a report and had no idea why some totals were debits and some totals were credits? Do you understand what a liabilities is or how to determine owners equity?

Seeing a bunch of numbers on a page doesn't mean very much if you don't understand why or how they got there.

Trial balance, Profit & Loss, Balance Sheet, Aging Summary. These reports are important for understanding where your business stands financially. But unless you understand how and why the totals got there, you might as well be reading a different language.