Here are four financial tools you can’t do without when it comes to controlling our finances:

• Bookkeeping – Accurate bookkeeping helps you stay on top of your finances. It allows you to compare forecasts with actual monthly figures and analyze monthly expenses. Bookkeeping also makes it easier to monitor your business’s financial health, and helps you comply with tax requirements.
• Cash flow statement – cash flow statements document your incoming and outgoing cash, defining payables and receivables plus depreciation of product value and unsold inventory, so you can assess your cash situation and other resources quickly and accurately.
• Income statement – by recording all your business’s revenues and operating expenses for a given period, an income statement can offer you critical insights, including which areas are over (or under) budget and which items are causing unexpected expenditures.
• Balance sheet – your balance sheet is a list of assets, liabilities, and owner’s equity as of a specific point in time, or period of time. It lets lenders and investors perform a quick assessment of the state of your business. In fact, potential lenders, such as banks, investors, and vendors, may use income statements and balance sheets to determine your credit limits.

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