Stop Nodding at Your Accountant.
You don't need an accounting degree to run a business. You just need to know how to read the "Big 3" financial statements.
The Financial Statement Decoder
Click any line item below to translate it into plain English.
Balance Sheet (As of Dec 31)
What you Own vs. What you Owe.
Select a Line Item
Click any row on the left to see what it actually means for your business.
Accounts Receivable
Money that customers owe you for work you have already delivered. It is counted as "Revenue" but you can't spend it yet.
Business Owner Tip:
If this number is growing faster than your Sales, you have a collection problem. You are essentially giving your clients an interest-free loan.
Now that you understand the numbers...
The biggest expense on most P&L statements is Labor. Use our calculator to see how adding a new employee will impact your bottom line before you hire them.
Try Payroll Cost Forecaster →1 Current Ratio
Can you pay your short-term bills?
Goal: Above 1.5. If it's below 1.0, you are technically insolvent.
2 Net Profit Margin
How much of every dollar do you keep?
Goal: Varies by industry. Construction ~5-10%, SaaS ~20%+.