It may initially seem strange to think of the importance of financial statements in marketing. Well, they are. This can be seen in three main areas: one’s income statement; balance sheet and cash flow statement. So let’s take a brief look at all of them. The income statement (which I guess is also pretty much how much you are making versus how much you are losing – aka profit and loss – gives some indication as to how your company is doing and how efficiently it is being operated. What you will see on this is the price of your services/products being sold; how much your products/services cost to start with; net sales and general office/company expenditure. By looking at this, you can pretty much see where the company is holding. Next, the balance sheet which serves two main functions: listing the company’s liabilities; listing the company’s assets. Liabilities a company may include: how much your company owes other people/companies and assets may include: what amounts of money are owed to your company. The cash flow statements come from various parts of the income statement. It is on a chart that has starting cash balance; an itemization of each income source; available cash balance. With this information you make a total of all the cash that needs to go out and then you take that away from the available cash balance which gives you the ending cash balance, thus enabling you see to see how the cash moves around (aka cash flow) by moving the ending cash balance to the top of the next column (for the next month) and that starts your starting cash balance for that month. Basically all these three things (income statement; balance sheet and cash flow statement) can tell you where you can go vis-à-vis your next marketing step like maybe now is not the time for you to start a hugely expensive ad/marketing campaign; the data you will get from your financial statement can help you in making informed decisions for the future which involves your marketing strategy.