Let’s get real for a minute; reading financial statements probably wasn’t on your “things I’m excited to do as a business owner” list. But here’s the thing: if you don’t understand your numbers, your business is basically running you instead of the other way around.

Think of it like this—your financial statements are the cheat codes to making smarter decisions, keeping more of your hard-earned cash, and avoiding “oh shit” moments when tax season rolls around.

And if numbers make your head spin? Don’t worry; we’ve got a little something at the end of this article to make it all ridiculously easy. (Or at least easier.) 

Curious? Keep reading.

The Three Must-Know Financial Statements  

Every small business owner should be familiar with these three basic (but crucial) financial reports:  

Profit & Loss Statement (P&L) – AKA “Did I Make Money?”  

This report shows your revenue, expenses, and profit (or loss) over a set period. It tells you if your business is actually making mo...