Member Equity

A balance sheet is a snapshot of the cooperative’s financial position at a given point in time, such as the end of a month or year. Managers need good records to prepare accurate financial statements including income (profit and loss) statements and balance sheets. These statements can help in dealing with the co-op’s bank or creditors and help the co-op manage business decisions.

  • An income statement shows the income and expenses of the cooperative during a period of time.
  • A balance sheet shows the assets, liabilities, and members’ equity in the cooperative at a given date.

How to Read a Balance Sheet