P&L, balance sheet, and cash flow: what each report tells you

Use the three reports together instead of treating profit, cash, and financial position as the same thing.

What to do this week

1. 1

   Review revenue and expense trends on the P&L.

2. 2

   Inspect assets, liabilities, and equity on the balance sheet.

3. 3

   Trace why cash changed during the period.

How to use this field note

Use the checklist to organize records and identify the question that needs attention. Confirm deadlines and federal requirements against the linked official source. State, local, entity-specific, and fact-specific rules may differ.