If you’re not familiar with accounting or financial statements for a company, just looking at them can be intimidating. Even once you’ve figured out things like gross margin, cost of goods, and cash on hand, there are other line items that will still cause you to scratch your head, like amortization.

Every small business owner gets bogged down and behind at some point. However, the one business practice that you must consistently perform is reading financial statements. To really understand the position of your business, you need consistent reviews of your balance sheet, income statement, and cash flow.