If you're in the trades—running a contracting company, service business, or small crew—you already know how to keep a job running on time and on budget. But what about your business?
Financial statements are the blueprint of your business's health. And if you’re only looking at them when tax season hits, you’re missing out on crucial insights that can make—or quietly break—your business.
At Ennovo Solutions, we help contractors and tradespeople understand the numbers behind the work, so they can grow with confidence. In this guide, we’ll break down exactly how to read your financial statements—and what they actually mean for your bottom line.
Financial statements are formal reports that summarize how much your business is earning, spending, and keeping.
There are three key documents every business owner should understand:
Let’s break each one down in a way that actually makes sense for business owners like you.
Your balance sheet tells you what your business owns (assets), what it owes (liabilities), and what’s left for you (owner’s equity).
Why it matters for contractors:
It helps you see if your business is top-heavy in debt, if your equipment and tools are valuable assets, and whether your business is growing in value year-over-year.
Key formula:
Assets = Liabilities + Equity
If liabilities are growing faster than assets, you’ve got a problem.
Also called a Profit & Loss (P&L) statement, this tells you how much revenue came in, what expenses went out, and how much was left over (profit).
Why it matters for trades:
It helps you understand which jobs or services are actually making you money, which ones are eating your profit, and how to adjust pricing.
Watch for:
Your cash flow statement shows how much money is moving through your business—into and out of your bank account. This includes:
Why it matters:
Cash is king. Profit on paper doesn’t pay your crew, taxes, or bills. This tells you if you’ll have the cash on hand when you need it.
Pro tip:
Don’t confuse cash flow with profit—they’re different. You can be profitable and still go broke if cash flow is tight.
Knowing how to read financial statements means you can:
If you can read a blueprint, you can read your books. You just need the right tools and support.
You didn’t start your business to do accounting. That’s where we come in.
At Ennovo Solutions, we help service businesses across Canada and the U.S.—especially trades and contracting companies—get clear, consistent, and useful financial insights.
We combine bookkeeping + payroll + financial statement analysis so you’re not just reacting, you’re planning.
If you’re building something real, don’t fly blind. Understanding your financial statements is how you keep more of what you earn—and grow on your own terms.
Let us walk you through it.
🔹 Contact us today to book your free discovery call and see how Ennovo can help your numbers work for you—not against you.
