Each plays an important role in planning and managing your business.
Tip: It is important to understand that all three financial statements are related and connected indicators of the businesses feasibility, risk and profitability. As you go through the preparation of your financial documents and business plans, you will need to document and sort the information that is used to create these documents.
A spreadsheet (or combination of several spreadsheets) is one of the most effective tools for gathering, compiling and managing this information.
As you collect your information, keep a record of the information you gather.
Below is a simple example of a common Start-up/Expansion Capital Worksheet.