With a bit of practice, understanding financial statements is easy. Think of your Balance Sheet reports as a set of before-and-after photos, with your Profit & Loss report telling the story of what happened in between.
Balance Sheet report: Provides a snapshot of the value of assets, liabilities and equity at any point in time
Profit & Loss report: Summarises income, expense and net profit over a specified period of time
Statement of Cash Flow: Examines the cash flows in and out of a business
Trial Balance report: Lists the debit and credit balances of all general ledger accounts at any point in time