What is break-even analysis? The break-even point is when your company is not making any profit. At the same time, it is the place in time where your company is not making any profits either. Basically, your company is covering expenditures but not gaining any profits. A break-even point gives you a target of what you need to shoot for to make profits. If you don't know your company's break-even point, you are shooting in the dark and you cannot see your target goal. A break-even analysis is definitely a very important function for your company. Knowing your company's break-even point can help you establish the right pricing and financial strategies. It helps you understand profits and losses and if you can't cover expenses, your company is just losing money.
When it comes to your balance sheet vs income statement, they are not the same. There is a difference. While both will.
