Understanding Business Financials

Everything in business boils down to one simple equation: Assets = Liabilities + Owner's Equity.

Think of it like this: Assets are all the valuable things your business owns.

Liabilities are what you owe to others. And Owner's Equity? That's your slice

of the pie—what's actually left for you. This isn't just a random formula.

The Balance Sheet is a literal snapshot of this equation on a specific day. Then,

your Income Statement shows if you're actually making money over time. The coolest part

is how they connect. The profit you make directly boosts your Owner's Equity. It’s the financial

story of your business.