The Big Three: P&L, Balance Sheet, and Cash Flow Statements

Numbers tell the story — but only if you read all three chapters.

Profit & Loss (P&L): Measures income vs. expenses to determine profitability. Balance Sheet: Shows what you own (assets), owe (liabilities), and your true equity. Cash Flow Statement: Reveals how money actually moves through your business.

Why It Matters A property can look profitable on a P&L but still struggle with cash flow. The full picture only emerges when you review all three.

Pro Tip: Review these statements quarterly to identify patterns in leverage, liquidity, and operational efficiency.

⚠️ This blog is for informational purposes only. It may not apply to your specific situation. Please consult your CPA.