3 Financial Reports Every Business Owner Should Understand

You don’t need to be an accountant to run a successful business—but understanding your core financial reports is essential. These documents give you the insight to make smart decisions, catch problems early, and stay on track toward your goals.

At MCAC, we help business owners across Alaska build confidence in their numbers. Here are the three reports every business leader should know—and what they actually tell you.

1️⃣ Profit & Loss Statement (P&L)

Also known as the income statement, this report shows your revenues, expenses, and net profit over a period of time. It answers questions like:

✔️ Are you making money?

✔️ Where are your biggest costs?

✔️ How have things changed month-over-month or year-over-year?

2️⃣ Balance Sheet

Your balance sheet shows what you own (assets), what you owe (liabilities), and what’s left over (equity). It’s a snapshot of your business’s financial health on a specific date.

3️⃣ Cash Flow Statement

Profit doesn’t equal cash. This report shows the inflow and outflow of cash so you can see:

✔️ If you have enough to cover expenses

✔️ How operational, investing, or financing activities affect your cash position

✔️ Whether your business is sustainable over time

Understanding these reports doesn’t just help you manage the day-to-day—it helps you lead with confidence. If your financials feel unclear, MCAC is here to help you make sense of the numbers and turn them into insight.

📞 Let’s review your reporting together and make your numbers work for you.