To properly track the finances for a business, it's important to understand the three common financial statements - the Balance Sheet, the Statement of Cash Flows, and the Income Statement. These three financial statements relate to each other and can help investors paint a holistic financial picture of their profitability.
The Balance sheet reports a business' Assets, Liabilities, and Owner's Equity. This financial statement can be used to help a property investor or limited partner understand how much the business owes and owns.
\[ Assets = Liabilities + Owner's \, equity \]