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You have received an advance payment from the client, but have not yet shipped the goods. You have not received any income, since you have not yet fulfilled your obligations to the client. The money received from the client also does not belong to you, since the client can demand it back at any time until you have fulfilled your obligations.
You shipped goods to a customer, but they haven't paid you. You recognize revenue because you've fulfilled your obligations to them and you have an account receivable.
You may not pay a ruble to your internet provider this month, but you will have an obligation to pay it. An expense is recognized, and bolivia whatsapp number database accounts payable arises.
The income and expense budget provides information on the real financial result. Do you have several online stores, an offline point or other projects? Our client knows how each direction worked ! And you?

What is the purpose of the income statement? If you analyze the activity of your online store only on the basis of the actual cash flow, you do not take into account the obligations that arise for you and your counterparties. As a result, you will receive distorted information about the real state of affairs in the online store.

Example:

At the end of the month, you may have a large sum in your current account, but all this money will have to go to cover accounts payable (for the Internet, goods, rent, etc.). You may have no money in your account, but by the end of the month, your accounts receivable from your customers may have grown significantly (you have already sent the goods, but the customers have not yet paid).
Balance Sheet
Let's say that according to the cash flow statement, an online store received a cash inflow of 1.5 million rubles for the month. However, according to the income statement, the financial result for the same month was 2 million rubles. The head of the online store will have a reasonable question: "Where did the difference of 500 thousand rubles actually go?"

To understand where the financial result of the organization settles, it is necessary to study the changes that have occurred in the structure of assets and liabilities. The balance sheet will help us with this!