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Balance Sheet Basics. Your balance sheet (sometimes called a statement of financial position) provides a snapshot of your practice's financial status at a particular point in time. This financial statement details your assets, liabilities and equity, as of a particular date. Although a balance sheet can coincide with any date, it is usually prepared at the end of a reporting period, such as a month, quarter or year.
A cash flow statement is one of the three primary financial statements that companies release on a regular basis. A cash flow statement shows where money is coming from and where it is going. If you are an investor or a potential investor in a company, this statement can provide you with valuable information, but it also has a few drawbacks.