Why do I need up-to-date financial statements (balance sheet, income statement, and cashflow statement)?
posted on July 5, 2023
Financial statements are the best way to demonstrate the business's current ability to make profits and manage its liquidity (correcting cash and paying its obligations). When seeking capital, debt or equity, demonstrating the ability to manage money under your responsibility is table stakes. Particularly with lenders, the financial statements are used to generate ratios to test your ability to repay loans and interest.