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The Balance Sheet is like a snapshot of your business’s financial position at a specific moment. It lists what you own (assets), what you owe (liabilities), and what’s left over (equity).

The Cash Flow Statement tracks the flow of cash in and out of your business. It’s essential for understanding how well your business manages its cash and whether you have enough to cover your expenses.

Understanding these statements is crucial because they provide insights into different aspects of your business’s financial health. Here’s why they matter:

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