Financial Statements for Business Owners — Guide
The balance sheet and income statement tell you whether your company is healthy. Learn to read financial statements and make smart business decisions.
Every year, business owners in BiH sign financial statements they haven't understood.
The balance sheet provides a snapshot of the company's financial position on a specific date. Assets (current: cash, receivables, inventory; non-current: equipment, property) must equal Liabilities + Equity.
The income statement shows results over a period. Revenue minus costs equals net profit or loss.
Key ratios: Gross margin = Gross profit / Revenue. Current ratio = Current assets / Current liabilities (healthy if > 1.5).
ENS d.o.o. holds quarterly review meetings with clients to analyse these indicators. Contact: +387 61 158 271
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