Many business owners are confused about whether the income statement and balance sheet are the same. Actually, both are types of financial statements. Financial statements play a crucial role in Business success. Every Business Owner needs to maintain their financial records to grow their business. The income statement works only for a fixed period, like quarterly and annually. A balance sheet provides a snapshot of a company's financial health, showing what it owns, what it owes, and the owner's stake. The income statement works only fixed period, like quarterly and annually. It helps to record the revenue of your company, such as profit, expenses, and losses.