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This Week's Tip

Operating results and other financial information are critical to managing a business. Every new business owner should design the financial statements and reports that are necessary for managing the business. Income Statement, Balance Sheet, and Cash Flows are the three basic financial reports, but certain businesses require additional reports on other financial aspects such as Sales, Accounts Receivable, Cash activity, and labor costs. Monthly is the typical timing for most financial reports; however, some businesses require daily, weekly, and other interim reports. Today's accounting and management software packages provide business owners will considerable flexibility in financial report design and frequency.