Traditional real estate portfolio management reports provided by accounting firms include a Profit & Loss Statement (P/L), a Balance Sheet (B/S), and Statement of Cash Flow.
The Profit & Loss shows the income and expenses for any given period, the Balance Sheet shows a company’s assets and liabilities for at any point in time, and the Statement of Cash Flow shows how the cash was utilized for a given period.
The flaw of traditional accounting reports like these, and P/Ls alone, is that they report the facts for a given period but fail to provide any actionable information. What factors contributed to those outcomes?
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