Last week, we talked about why the Balance Sheet deserves your attention. This week, let's simplify one of the most important concepts in accounting. Every business is built on one simple equation: Assets = Liabilities + Owner's Equity. So let’s talk about it.

When most business owners think about their financial reports, they usually want to know one thing:

"Did I make money?"

That's an important question, but it's not the only one.