A Balance Sheet tells the business financial situation.  A balance sheet should reflect cash on hand for the business, all assets a business might have, all debits a business may have occurred, all captial investments and / or owners draws or dividens. A Profit and Loss statement reflects the current fiscal years income and expenses for the business.  This report takes the income and reduces the expenses to reflect either a profit or a loss for the year. A bookkeeper can assure that these reports are accurate and can help develop these for the business CPA. A bookkeeper can either work with the business within the year to help in invoicing correctly, collecting and paying bills and reducing debit which in turn will produce accurate financial reports.