Financial Fitness for Better Life

None of the business can be started without investment in starting. It have its own hidden and visible expenses like salary, building rent, electricity, stationary etc. and some other comes time to time. So there is a lot of importance of money in a business, same in case of home. A family has it own needs and expenses like telephone bills, eatables things and other general things. So it is very much important to arrange our expenses according to income from various sources.

Income Sources

Mainly income sources comes under two categories:

1. Business
2. Service

These categories can be further categories by different following categories like harvesting, shop or any thing small work done by the person with out supervisory help is called comes under business category and the works under any supervisor, guide or senior comes under service category.

Financial Statements

Financial statements [or financial reports] are a record of a business' financial flows [revenues/expenses] and levels [assets/liabilities]. The big four statements are:

1. Balance sheet, which describes a company’s assets, liabilities and net equity at both, a specific point of time and at the beginning of the period of time.
2. Income statement, which describes a company's income, expenses and net income/loss over a period of time.
3. Cash flow statement, which describes how much cash, was used in corporate operating, investment, and financing activities over a period of time.
4. Statement of changes in shareholder equity, which reconciles the difference between the equity at the two different points in time.

These documents are typically relates to the business but when we think about home than it is not concerned with documents. We can only think about rough idea about our income and expenses. Theses can also be the documents same as business purpose but not very much complex. These are also very much helpful in managing own needs and expenses according to the income.

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