Hey Bestie, welcome to the grand finale of Summer School. We've talked about the profit and loss report, the balance sheet, and cash flow, and today we're bringing it all together so you can see how these three reports really just tell one big story about your business. But a quick recap, this is a four-part series, so stop right now and go listen to the other three sessions. If you haven't already, they are all linked in the show notes, but you're going to want to listen to each one individually before you try to piece it all together in this episode. So go do that if you haven't already, and let's jump into this wrap-up. Hey Bestie, welcome to the Get Comfy with Numbers podcast. I'm Erica Millard, your bookkeeping bestie and founder of Bookkeeping with Erica. Whether you need to set up your books, clean them up, or take bookkeeping totally off your plate, I've got you. And if you're already feeling a little sweaty and nervous just hearing the word bookkeeping, you're in exactly the right place. This podcast is here to help female business owners like you go from confused and overwhelmed to clear and confident when it comes to your business finances. We'll keep it simple, ditch the jargon, and talk through things like how to stay on top of your bookkeeping in less time, what clean books actually means, how to fix common QuickBooks mistakes, and how to use your numbers to make smart, empowered decisions. So grab one of the three drinks on your desk currently, and let's get comfy with your numbers. So the big idea here is that each report answers a different question. Your P&L answers, how did I perform over a period of time? The balance sheet answers, where do I stand right now today? The cash flow answers, where did my money actually move in and out? And together they cover performance, position, and movement. That's the whole story. But I really want you to think about this like a road trip, okay? So go with me here for a second. Your P&L is like the speedometer, how fast you went over the trip. And for some of you, that's going to be a little faster than others if you're like my husband or a little more cautious like me. The balance sheet is going to be the GPS pin. So exactly where you are right now at this moment in time. And the cash flow is kind of like your gas gauge, whether you have enough fuel to keep you going.

might be where you need a little bit more advanced help if you're continually feeling like you're running out of cash out of cash all of the time. Is the cash flow the same thing as a budget? Well, not necessarily because typically when we talk about cash flow, this is showing what's already happened where a budget is a prediction of what's going to happen in the future. But you can create cash flow forecasts, meaning you're almost budgeting for how your cash is going to flow in and out of the business for a certain period of time. So they can work together and help each other. But one points to the past and one points to the future. In summary, cash flow is all about timing. Profit and cash are two different stories, and you really need to know both to know what's going on in your business. Okay, well, thanks for attending this session of summer school. Next week is the grand finale. We're going to put the P&L and the balance sheet and the cash flow all together to see how they finally show one big story about your business. You don't want to miss it. So be back next week. And until next time, happy bookkeeping. Thanks for hanging out with me today on Get Comfy with numbers. If today's episode made your bookkeeping feel a little lighter, I'd love if you would take a minute to rate and review the show. It helps more women business owners find the support they've been looking for. And until next time, happy bookkeeping.

Hey, Bookkeeping Bestie, welcome back to Summer School. Last session, we talked about the profit and loss report, and today we're moving on to a report that honestly, most small business owners completely ignore or really don't understand, the balance sheet. And I get it, it looks confusing, and there's a lot of terminology on there that you may not be familiar with, and sometimes it doesn't feel as relevant as the P&L. But by the end of this episode, you're going to understand what it is, why it matters, and what to actually look at when you open it. So just a reminder, this is a quick summer series where we're going over foundational financial topics. So you're going to want to take notes as we go along. Hey, Bestie, welcome to the Get Company with Numbers podcast. I'm Erica Millard, your Bookkeeping Bestie and founder of Bookkeeping with Erica. Whether you need to set up your books, clean them up, or take bookkeeping totally off your plate, I've got you. And if you're already feeling a little sweaty and nervous just hearing the word bookkeeping, you're in exactly the right place. This podcast is here to help female business owners like you go from confused and overwhelmed to clear and confident when it comes to your business finances. We'll keep it simple, ditch the jargon, and talk through things like how to stay on top of your bookkeeping in less time, what clean books actually means, how to fix common QuickBooks mistakes, and how to use your numbers to make smart, empowered decisions. So grab one of the three drinks on your desk currently and let's get comfy with your numbers. So what even is a balance sheet? The simple version is while the P&L will tell you how your business performed over time, the balance sheet is a snapshot of where your business stands right now or the specific moment in time that you choose when you put a filter on the date. So you are looking at 1231 at the end of the year or you're looking at a month worth of time and that is the point of time it is right now, not a span of time. So that can get a little heady and confusing, but it's important to understand because that is a difference between the P&L and the balance sheet. I'm going to be honest. When I was in college, my dad came to visit one day and he took me out to lunch. And I vividly remember being in my very first accounting class.