A P&L statement (aka income statement) overviews how a business is performing by showing revenue, direct costs, and business expenses. In contrast, a balance sheet summarizes all of a business’s long-term assets, liabilities, and shareholders’ equity. Finally, a cash flow statement shows where your cash is coming from and where it’s going. Along with showing money earned from sales, it should show the money you earn from investing and trade opportunities plus cash from bank loans or other financing options. It also details cash outflow to help you determine if you’re spending more than you’re earning. Taken together, income statements, balance sheets, and cash flow statements give you a detailed look at your business’s financial health. If you want to see how your business is doing overall, it’s a good idea to work with all three.