Balance Sheet and Income statement provides two different information. I would like to define the two financial statement first: Balance Sheet The balance sheet, also referred to as the statement of financial position, reports the financial posit... For example, the income statement details the company’s revenues, gains, expenses and losses but does not include cash receipts or cash disbursements. Meanwhile, the balance sheet often includes what might be referred to as theoretical money such as money that is owed to the company but not yet collected, while the cash flow statement reports money actually received or paid. Balance sheets and income statements can highlight trouble areas, such as chronic late payment fees for bills, or back taxes that you owe. If the income statement shows a high rate of returns, this could point to problems with your product that need to be addressed. Oct 04, 2019 · The relationship between balance sheet and income statement is that the profit of the business shown in the income statement, belongs to the owners and this is shown by a movement in equity between the opening and closing balance sheets of the business.