1. To understand this equation just ponder on the following situation:
Take ice cube and weigh it. Now allow it to melt in a plastic cup of negligible mass. The mass of water you weigh is the same as that of water. This is law of conservation of mass which is followed when reactions occur.
2. So, in a reaction mass of reactants = mass of products.
3. Chemical formula explains the course of reaction, thus it is important to know the chemical formula of both products and the reactants.