Introduction Businesses must choose between cash basis accounting and accrual accounting for financial reporting. The IRS allows small businesses with annual revenue under $27 million (as of 2025) to...
Introduction A balance sheet is one of the three main financial statements that provide a snapshot of a company’s financial position at a given point in time. It outlines...
Introduction An income statement (also called a profit and loss statement) provides a detailed breakdown of a company’s revenue, expenses, and net profit over a specific period. Understanding how...
Introduction A cash flow statement tracks how money moves in and out of a business over a specific period. Unlike an income statement, which focuses on revenue and expenses,...