What Is A Small Business?

What is a small business?.

All companies, large or small, will want to know their financial position. To help companies to make comparisons between one year and the next, companies may well use ratio analysis. Also there are two main accounts that a company will produce to measure its financial status. These are: the profit and loss account and balance sheet. Profit and loss account shows income that the company has earned and expenses that it has paid during that year. Balance sheet is made up of three parts: assets, liabilities and owner’s capital. This statement shows financial position of a business at a given point in time.