3 Statements Model
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I really enjoyed this book. It captures the essential challenge people face as they try make sense of their lives and grow to adulthood.

3 Statements Model

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General Overview

The template is the combination of the three major reports on a business. It will contain the cash flow statement, the income statement and the balance sheet of the business. All three together produce an overall picture of the health of the business

Why is a Financial Statement Important?

The financial statement tells if the business is profitable, if it will stay profitable and if there are any large problems looming, such as a continuous drop in sales over time. Reading the financial statement will give an overall view of the condition of the business and if there are any warnings signs of possible future problems

When Will a Company Prepare a Financial Statement?

Every business will ready a financial statement to go with their end of year results, to give interested parties the overview of how the business is functioning. If a business is looking to increase credit facilities with a bank or trying to raise capital for an expansion, it will produce a financial statement for the end of a fiscal quarter or the most recent month. When preparing a financial statement for such purposes the best practice is to use general accountancy language, understood by all parties. A financial statement that may accompany an end of year report and read just by employees, is often in terms familiar to just those involved

This is a highly versatile, very sophisticated financial model template, and is also user-friendly.

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