There are many important documents in the world of business and business ownership, but perhaps no one document is as vital to your financial future as the financial statement.

It is this simple statement that banks, investors and potential partners will use to gauge the current success of your business, and to calculate its future odds of success.

==Using Your Financial Statement To Get Your Business Off The Ground==

Just about everyone who has ever held a nine to five job has dreamed of striking out on their own and leaving the rat race for a slice of the pie.

This approach can be a great choice for many people, but it is important for any would be entrepreneur to understand the world of business, and to understand just what goes into the average financial statement.

Preparing a detailed business plan, including a strong financial statement and a compelling executive summary, is a big part of getting any business off the ground.

==Understanding The Financial Health Of The Business==

It goes without saying that the financial statement will detail the financial health of the business, including the sources of income, all of the business related expenses and of course the profit and loss statement.

The financial statement should also detail the past performance of the company, including how the current performance compares to what the company has done in the past.

==Using A Mentor To Help You Create Your Financial Statement==

The new business owner with a solid business background behind them may have little trouble creating a solid business plan and financial statement, but those who lack such a business background will probably need some help creating this important financial document.

It may be a good idea to seek a business mentor who can help guide you through the creation of your first financial statement. After you understand how the statement works, and what it should include, it will be far easier to create another financial statement as you more forward.

Shaunta Pleasant is a professional writer and editor on business planning topics. Visit my site to learn more about planning the perfect wedding at http://www.yourbusinesspal.com/financial_statement_example.html