Imagine running a business without knowing how much money you’re making or spending. That’s where accounting comes in. It’s the language of business, translating numbers into a story about your company’s financial health. At its core, accounting involves recording, reporting, and analyzing financial transactions.

Picture a balance sheet as a detailed photograph of your business’s financial position at a particular moment. It’s divided into three main sections: assets, liabilities, and equity. Each section provides crucial insights into your company’s financial standing and helps in assessing its stability and growth potential.

Imagine the income statement as your business’s report card, detailing how well it performed over a certain period. This crucial document summarizes your revenues and expenses, showing how your sales translate into profits. Think of reading an income statement as piecing together a financial puzzle.