An income statement shows you how profitable your company has been in the most recent financial quarter and helps you determine whether your business is on the right track. It includes your company's primary expenses, secondary expenses, and losses. Together, these things determine the company's net income.
You should create your company's balance sheet on the last day of each accounting cycle, usually quarterly. This document includes business assets and liabilities as well as your equity on the last day of the cycle. The balance sheet shows your company's current financial position, whether good or bad, and is considered a part of the general ledger.
Your company's cash flow statement shows its finances on a cash basis instead of an accrual basis. Cash shows you the revenue you've actually received, but accrual shows you what you've earned, even if a customer hasn't yet paid you yet. You must prepare this statement last because it pulls information from all previous statements.
The above mentioned financial documents are the most common ones used in every business. Many business owners decide to hire a professional to prepare these documents for them such as a Rancho Cucamonga CPA who are experienced with business financial matters and can give solid advice and provide warnings about any dangers of business failure.